Business, 20.12.2019 19:31 Beast3dgar

Westbrook's painting co. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. the company's marginal tax rate is 40.00%, but congress is considering a change in the corporate tax rate to 30.00%. by how much would the component cost of debt used to calculate the wacc change if the new tax rate was adopted?
a. 0.57%
b. 0.63%
c. 0.70%
d. 0.77%
e. 0.85%

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Westbrook's painting co. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% an...

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