Keys printing plans to issue a 1000 par value 20-year non


Keys printing plans to issue a $1,000 par value, 20-year non callable bond with a 7.00% annual coupon, paid semiannually. The company's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 32.75%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Keys printing plans to issue a 1000 par value 20-year non
Reference No:- TGS01260742

Expected delivery within 24 Hours