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Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00%...

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Keys Printing 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 45.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Do not round your intermediate calculations.a. -0.42%b. -0.44%c. -0.30%d. -0.35%e. -0.36%

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To determine how the component cost of debt used to calculate the Weighted Average Cost of Capital WACC changes with the new tax rate we can follow these steps Step 1 Calculate    See Answer
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