The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now...
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Accounting
The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 25 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $950 and the company's tax rate is 35%. What is the after-tax cost of debt for use in the WACC calculation?
a. 4.16%
b. 4.46%
c. 4.79%
d. 5.39%
e. 5.83%
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