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The Blitz Sports Company has issued 10% coupon bonds. Coupons are paid on a semi...
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The Blitz Sports Company has issued 10% coupon bonds. Coupons are paid on a semi-annual basis, the bonds have a R1 000 par value and will mature in 10 years. The bonds are currently selling at a price of R900. The company's tax rate is 28%. What is the firm's component cost of debt for purposes of calculating the weighted average cost of capital (WACC)?
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