Order the answer to: To finance a major expansion,…
| Question | To finance a major expansion, Castro Chemical Company sold a non callable 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 $875, 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? 1. 5.95% 2. 5.63% 3. 6.47% 4. 5.31% 5. 6.15% |
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| Subject | business-corporate-finance |
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