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Question 14 4 pts 14. You want to estimate the before-tax cost of debt, rd, for Dahlia Corp. The company has semi- annual coupon bonds

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Question 14 4 pts 14. You want to estimate the before-tax cost of debt, rd, for Dahlia Corp. The company has semi- annual coupon bonds outstanding with a market price of $1.125.00. The bonds have coupon interest rate of 12%, a face value of $1,000, and a maturity of 14 years. If flotation costs are 5%, what is Dahlia's before-tax cost of debt? a. 10.29% O b. 11.69% C. 11.03% d. 12.21% e. 12.71%

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