A tax rate 20 b average price of outstanding bonds 1120 c


1. Calculate Company A's weighted average cost of debt, given the following information: 

(a) Tax Rate: 20%, 
(b) Average Price of Outstanding Bonds: $1,120, 
(c) Coupon Rate: 5%, 
(d) NPER: 27, 
(e) Debt: $33,000,000, 
(f) Equity: $24,000,000, 
and (g) Preferred Stock: $5,000,000. 

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