Business, 21.04.2020 19:22 ling95

To help finance a new plant, Roxxon, Inc. just sold a noncallable 40 year bond. This $1,000 par bond sells for $1,155 and has a 8.25% annual coupon, paid semiannually. Assume there are no flotation costs, and the firm's tax rate is 30%, what is the component after-tax cost of debt for use in the WACC calculation?

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To help finance a new plant, Roxxon, Inc. just sold a noncallable 40 year bond. This $1,000 par bond...

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