Posted: November 5th, 2022

(individual or component cost of capital) compute the cost of capital

(Individual or component cost of capital) Compute the cost of capital for the firm for the following: a) A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.1%. The bonds have a current market value of $1,130 and will mature in 10 years. The firms marginal tax rat is 34%.
marlon:
The cost of capital from this bond debt is __ % (Round to two decimal places)

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