WMT's tax rate is 21% and WMT has 100,000 bonds outstanding that pay $25 every six months.

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WMT's tax rate is 21% and WMT has 100,000 bonds outstanding that pay $25 every six months. The bonds currently sell for $880 and mature in 5 years. The U.S. Treasury bill (r_f) is yielding 2% and the expected market return is 12%

What is WMT's cost of debt capital?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Sep 01, 2023 12:51 AM

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WMT's tax rate is 21% and WMT has 100,000 bonds outstanding that pay $25 every six months.

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Income Tax Fundamentals 2013

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