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Problem 11-4 Cost of Debt (LG11-3) KatyDid Clothes has a $140 million (face value) 20-year bond issue selling for 103 percent of par that carries

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Problem 11-4 Cost of Debt (LG11-3) KatyDid Clothes has a $140 million (face value) 20-year bond issue selling for 103 percent of par that carries a coupon rate of 14 percent, paid semiannually. What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt %

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