Forecast the future cost of debt (r_D) based on their current outstanding debt. current debt is $6,472 million

See Exhibit 1.

What do you think that the cost of debt will be if the company issues a bond to fund a new project?

Why?

Date	Dividends
9/6/2018	1
6/7/2018	1
3/8/2018	1
12/7/2017	0.97
9/7/2017	0.97
6/7/2017	0.97
3/8/2017	0.97
12/7/2016	0.92
9/7/2016	0.92
6/8/2016	0.92
3/2/2016	0.92
12/2/2015	0.88
9/2/2015	0.88
6/3/2015	0.88
3/4/2015	0.88
12/3/2014	0.84
9/3/2014	0.84
6/4/2014	0.84
3/5/2014	0.84
12/4/2013	0.81
9/4/2013	0.81
6/5/2013	0.81
3/6/2013	0.81
12/5/2012	0.74
9/5/2012	0.74
6/6/2012	0.74
3/7/2012	0.74
12/7/2011	0.7
9/7/2011	0.7
6/8/2011	0.7
3/2/2011	0.7
12/8/2010	0.66
9/8/2010	0.66
6/2/2010	0.66
3/3/2010	0.66
12/2/2009	0.6
9/2/2009	0.6
6/3/2009	0.6
3/4/2009	0.6
12/3/2008	0.58
9/3/2008	0.58
6/4/2008	0.58
3/5/2008	0.58
12/5/2007	0.53
9/5/2007	0.53
6/6/2007	0.53
3/7/2007	0.53
12/6/2006	0.49
9/6/2006	0.49
6/7/2006	0.49
3/8/2006	0.49
12/7/2005	0.45
9/7/2005	0.45
6/8/2005	0.45
3/2/2005	0.45
12/8/2004	0.4
12/1/2004	1.02589
9/8/2004	0.4
6/2/2004	0.4
3/3/2004	0.4068
12/3/2003	0.34
9/3/2003	0.34
6/4/2003	0.34
3/5/2003	0.34
12/4/2002	0.3
9/4/2002	0.3
6/5/2002	0.3
3/6/2002	0.3051
12/5/2001	0.28
9/5/2001	0.28
6/6/2001	0.28
3/7/2001	0.28
12/6/2000	0.27
9/6/2000	0.27
6/7/2000	0.27
3/8/2000	0.27
12/8/1999	0.26
9/8/1999	0.26
6/2/1999	0.26
3/3/1999	0.26
12/2/1998	0.25
9/2/1998	0.25
6/3/1998	0.25
3/4/1998	0.25