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DMB, Inc.sells $100 million worth of 27-year to maturity 13.97% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $955 for each $1,000

DMB, Inc.sells $100 million worth of 27-year to maturity 13.97% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $955 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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