Question
Oberon, Inc., has a $25 million (face value) 10-year bond issue selling for 96 percent of par that pays an annual coupon of 8.40 percent.
Oberon, Inc., has a $25 million (face value) 10-year bond issue selling for 96 percent of par that pays an annual coupon of 8.40 percent.
What would be Oberons before-tax component cost of debt?(Round your answer to 2 decimal places.)
Cost of debt: ____%
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
