Business, 17.07.2019 19:30 Chanman40025
Kenny electric company's noncallable bonds were issued several years ago and now have 20 years to maturity. these bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. if the firm's tax rate is 40%, what is the component cost of debt for use in the wacc calculation? a. 4.35% b. 4.58% c. 4.83% d. 5.08% e. 5.33%
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