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Bob’s Roofing’s non-callable bonds were issued several years ago and now have 20 years to maturity....

Bob’s Roofing’s non-callable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 7.28% annual coupon, paid semiannually, sells at a price of $1,054, and has a par value of $1,000. If the firm’s tax rate is 35%, what is the component cost of debt (after-tax) for use in the WACC calculation?

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jeff jeffy answered 1 year ago
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