What is after-tax cost of capital for walgreens for bonds

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Reference no: EM13823387

The Walgreen's corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can now sell new $1,000 par value bonds with a 15 year maturity at a price of $950 that carry a coupon interest of 12.9 percent that is paid semi annually. If the company is in a 34 percent tax bracket, what is the after-tax cost of capital for Walgreens for the bonds?

The after tax cost of debt is _____%?

Reference no: EM13823387

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