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Juli2301 [7.4K]
3 years ago
9

The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% an

nual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?a. 4.28%b. 4.46%c. 4.65%d. 4.83%e. 5.03%

Business
1 answer:
Alecsey [184]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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A. Their home country and exporting them to other countries.

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