Problem

You now need to calculate the cost of debt for Dell. Go to cxa.marketwatch.com/ finra/Bond...

You now need to calculate the cost of debt for Dell. Go to cxa.marketwatch.com/ finra/BondCenter/Default.aspx, enter Dell as the company, and find the yield to maturity for each of Dell’s bonds. What is the weighted average cost of debt for Dell using the book value weights and the market value weights? Does it make a difference in this case if you use book value weights or market value weights?

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