Question
Oberon, Inc., has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.15 percent.
Oberon, Inc., has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.15 percent.
What would be Oberon's before-tax component cost of debt? (Round your answer to 2 decimal places.)
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
