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alexgriva [62]
4 years ago
15

Jacob Company sold a $1,000 par value, non-callable bond that has 20 years to maturity and a 7.00% annual coupon that is paid an

nually. The bond is issued for $925, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

Business
1 answer:
ratelena [41]4 years ago
5 0

Answer:

4.64%

Explanation:

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