Question 28 3.34 pts To help finance a major expansion, Castro Chemical Company sold a noncallable...
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Question 28 3.34 pts To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,150, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? 5.63% 4.42% 3.87% 4.47% 4.66% Question 28 3.34 pts To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,150, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? 5.63% 4.42% 3.87% 4.47% 4.66%
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