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What is the firms after tax component cost of debt for

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A company's 6% coupon rate, semiannual payment, $1000 par value bond that matures in 25 years sells at a price of $656.95 The company's federal-plus-state tax rate is 30%. What is the firm's after tax component cost of debt for purposes of calculating the WACC (base answer on nominal rate. Round answer to 2 decimal places. My answer was 12.87%, but that is not correct.

Reference no: EM13478307

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