Question
Black Hill, Inc.sells $100 million worth of 25-year to maturity 12.06% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $856 for each
Black Hill, Inc.sells $100 million worth of 25-year to maturity 12.06% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $856 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. UseExcel or the financial calculator.
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
