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Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual 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?

User Mschmidt
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1 Answer

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4.65% is the component cost of the debt for use in the wacc calculation
User Ryanrhee
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