What is the after tax cost of capital to walgreen for bonds

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Reference no: EM13970856

The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $946 that carries a coupon interest rate of 12.3 percent that is paid semiannually. If the company is in a 34 percent tac bracket, what is the after tax cost of capital to Walgreen for the bonds? Question: The after-tax cost of debt is ___%

Reference no: EM13970856

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