单选题 A firm has $3 million in outstanding 10-year bonds, with a fixed rate of 8 percent ( assume annual payments). The bonds trade at a price of $92 per $100 par in the open market. The firm's marginal tax rate is 35 percent. What is the after-tax component cost of debt to be used in the weighted average cost of capital (WACC) calculations?

A、

A. 9.89%.
B、

B. 6.02%.
C、

C. 9.26%.

【正确答案】 B

【答案解析】If the bonds are trading at $92 per $100 par, the required yield is 9.26 percent, and the market value of the issue is $2.76 million. The equivalent after-tax cost of this financing is : 9.26% × (1 -0.35) =6.02%.