What is the component cost of debt for use in the WACC calculation?
Question 4 Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual
coupon that is paid semiannually. The bond currently sells for $950, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation? 4.81% 4.49% 4.31% 5.48% 5.30%