Question: Please answer quickly for a like 4 Hamilton Company's 5.6 percent coupon rate, semiannual payment, $1,000 par value bond, which matures in 4 years, currently
Hamilton Company's 5.6 percent coupon rate, semiannual payment, $1,000 par value bond, which matures in 4 years, currently sells at a price of $606.13. The company's tax rate is 36 percent. Based on the nominal interest rate, not the EAR, what is the firm's after-tax cost of debt for purposes of calculating the WACC? \begin{tabular}{|l} \hline 15.12% \\ \hline 16.12% \\ \hline 12.12% \\ \hline 14.12% \\ \hline 13.12% \end{tabular}
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