Cost of debt the walgreen corporation is contemplating a, Ask an Expert

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(Cost of debt) The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1,000 par value bonds with a 15-year maturity at a price of $948 that carries a coupon interest rate of 12.4 percent that is paid semiannually. If the company is in a 34 percent tax bracket, what is the after-tax cost of capital to Walgreens for the bonds?

The after-tax cost of debt is %?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91420177

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