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18 November, 07:38

Hamilton company's 8 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. the company's tax rate is 40 percent. what is the firm's component cost of debt for purposes of calculating the wacc?

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  1. 18 November, 11:03
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    The correct answer is the firm's component cost of debt for purposes of calculating the wacc is 7.32%.
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