Vista Development Co.’s bonds were issued several years ago…
Vista Development Co.’s bonds were issued several years ago and now have 20 years left to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sell at a price of $1,075, and have 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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