tinker77
Feb 22, 2014, 11:26 PM
I need some assistance with this question. Any help/tips would be greatly appreciated. Thanks in advance!
-A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $594.15. The company's federal-plus-state tax rate is 35%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Base your answer on the nominal rate).
-A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $594.15. The company's federal-plus-state tax rate is 35%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Base your answer on the nominal rate).