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    WACC

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    17. To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?
    5.95%
    5.63%
    6.47%
    6.15%
    5.31%

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    https://brainmass.com/business/weighted-average-cost-of-capital/310645

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