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Oberon, Inc. has a $30 million (face value) 12-year bond issue selling for 99 percent of par that pays an annual coupon of 8.00 percent.

Oberon, Inc. has a $30 million (face value) 12-year bond issue selling for 99 percent of par that pays an annual coupon of 8.00 percent. What would be Oberon's before-tax component cost of debt? (Round your answer to 2 decimal places.)
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