What is component cost of debt for use in wacc calculation

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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?

Reference no: EM131795256

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