What is the component cost of debt for use in the wacc


The Lincoln Company sold a $1,000 par value, non-callable bond several years ago that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the component cost of debt for use in the wacc
Reference No:- TGS02630698

Expected delivery within 24 Hours