To help finance a major expansion castro chemical company, Financial Management

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To help finance a major expansion castro chemical company

To help finance a major expansion, Castro Chemical Company sold a no callable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semi-annually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?

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Financial Management: To help finance a major expansion castro chemical company

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Financial Management: To help finance a major expansion castro chemical company

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