Before-tax component cost of debt

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Cost of Debt

Oberon, Inc., has a $15 million (face value) 12-year bond issue selling for 97 percent of par that pays an annual coupon of 8.10 percent.

What would be Oberon’s before-tax component cost of debt? (Round your answer to 2 decimal places.)

Cost of debt %

Reference no: EM131603813

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