Question: Q12 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Grady Corp. has existing debt that it issued four years ago with a coupon rate

Q12 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!

Q12 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Grady Corp.

Grady Corp. has existing debt that it issued four years ago with a coupon rate of 7.0%. The corporation just issued new, otherwise identical debt at par with a coupon rate of 6.5%. Thus for Grady Corp's pre-tax cost of debt to be used in its WACC, it should use a weighted average of 7.0% and 6.5%. True False

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