Calculation of the WACC

Since the level of debt is known, the appropriate discount rate to use is Kendrick’s pre-tax cost of debt, 9%. After-Tax PV of Payments = $229,500A100.09 + $4,250,000 / (1.09)10 = $3,268,098. The after-tax present value of interest and principal payments is $3,268,098. Present Value of the flotation cost tax … ................
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