What would be katydid before-tax component cost of debt

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KatyDid Clothes has a $140 million (face value) 20-year bond issue selling for 103 percent of par that carries a coupon rate of 14 percent, paid semiannually.

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

Cost of debt %

Reference no: EM131613122

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