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Blanka Dobrynin is convinced that Wringley could borrow $ 3 billion at a credit rating between BB and B and with an interest rate of

Blanka Dobrynin is convinced that Wringley could borrow $3 billion at a credit rating
between BB and B and with an interest rate of about 13%. However, a firms cost of debt is
often hard to estimate and different analysts can consider alternative methods that can
generate a wide range of estimates. Produce your own estimates of Wringleys cost of debt
assuming that it borrows $3 billion. Overall, would you agree with Blanka Dobrynin that
Wringley should be able to raise such amount of debt at an interest rate of around 13%?

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