Several years ago the weir company sold a 1000 par value, Finance Basics

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Several years ago the weir company sold a 1000 par value

Question: Several years ago the Weir Company sold a $1000 par value, noncallable bond that now has 25 years to maturity and 8.00% annual coupon that is paid semiannually. The bond currently sells for $950, and the company's tax rate is 40%. What is the component (after-tax) cost of debt for use in the WACC calculation?

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Finance Basics: Several years ago the weir company sold a 1000 par value

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Finance Basics: Several years ago the weir company sold a 1000 par value

Reference No:- TGS02590767

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