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Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to...

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 8.25% 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. 5.08% c. 4.51% d. 4.83% e. 5.33%

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Answer: 4.51%

jeff jeffy answered 2 years ago
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