Question
Oberon, Inc., has a $45 million (face value) 8-year bond issue selling for 98 percent of par that pays an annual coupon of 8.10 percent.
Oberon, Inc., has a $45 million (face value) 8-year bond issue selling for 98 percent of par that pays an annual coupon of 8.10 percent.
What would be Oberon's before-tax component cost of debt?(Round your answer to 2 decimal places.)
I have a 10 question homework assignment that is different questions all related to this, but I can't calculate the correct answer. I'd really appreciate the equation breakdown so I can calculate the rest.
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Entrepreneurial Finance
Authors: Chris LeachJ LeachRonald Melicher
3rd Edition
0324561253, 9780324561258
