Before-tax cost of capital for this debt financing

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Reference no: EM131347234

Black Hill Inc. sells $100 million worth of 29-year to maturity 10.59% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Reference no: EM131347234

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Before-tax cost of capital for this debt financing : Black Hill Inc. sells $100 million worth of 29-year to maturity 10.59% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

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