Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Several years ago the Jakobe Company issued a $1,000 par value, non-callable bond that now has 20 years to maturity adn a 7% annual coupon that is paid semiannually. The bond currently sells for $935, and teh company's tax rate is 40%. What is the component after-tax cost of debt for use in the WACC calculation?
Your answer should be between 3.34 and 5.43, rounded to 2 decimal places, with no special characters. 

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