Find before-tax cost of capital for debt financing

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Black Hill Inc. sells $100 million worth of 23-year to maturity 6.69% 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: EM132648692

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Find before-tax cost of capital for debt financing : Black Hill Inc. sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds.
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