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Black Hill Inc. sells $100 million worth of 18-year to maturity 7.58% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $972 for

Black Hill Inc. sells $100 million worth of 18-year to maturity 7.58% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $972 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.

You should use Excel or financial calculator.

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