Yield to maturity ytm on debt issues with risk comparable


Yield to maturity (YTM) on debt issues with risk comparable to the Sonar Company is currently 9.9%. Sonar has issued debt two years ago with a YTM of 8.00%. Sonar's common stock beta is 1.15, and its tax rate is 38. The appropriate rate for Sonar to use for debt in estimating its WACC is what rate? Show your answer as a percentage, rounded to two decimal places.

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Financial Management: Yield to maturity ytm on debt issues with risk comparable
Reference No:- TGS01206618

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