Solution-Before-tax cost of capital for debt financing

Before-tax cost of capital for debt financing

Reference no: EM132499380

Black Hill Inc. sells $100 million worth of 23-year to maturity 6.50% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $985 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form.

Reference no: EM132499380

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Before-tax cost of capital for debt financing

Reference no: EM132499380

Reference no: EM132499380

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