Finance quiz unit 7 Several years ago the Haverford Company sold a $1,000 par value bond that now has

Finance quiz unit 7 Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity

Finance 300

Fundamentals of Financial Management

UNIT 7 Haverford Company

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation? (Points: 5)

5.40% 5.73% 5.98% 6.09% 6.24%  SOLUTION