Multiple Choice
WC Inc. has a $10 million (face value) , 10-year bond issue selling for 99 percent of par that pays an annual coupon of 9 percent. What would be WC's before-tax component cost of debt?
A) 9.00 percent
B) 9.10 percent
C) 9.16 percent
D) 18.32 percent
Correct Answer:
Verified
Correct Answer:
Verified
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