By how much would the component cost of debt used to


Keys Printing plans to issue a $1,000 par value, 25-year noncallable bond with a 6.00% annual coupon, paid semiannually. The bond will be selling at $1,050. The company's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 25.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted?

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Finance Basics: By how much would the component cost of debt used to
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