Question 8 H&D is a U.S. multinational company with the following debt and equity components in its consolidated capital section. H&D CUTeney Assumptions Value Tax Rate 30.00% 10-year 6% Euro Bonds (euros) selling at par 8.000.000 20-year 8% Pound Bonds (pounds) selling at par 4.000.000 Spot Rate (S/E) $1.157 Spot Rate (S/E) $1.35 Number of common share outstanding 1.000.000 Stock price $25/share Stock beta 1.2 Risk-free rate 4% Market expected retum 10% What is H&D's overall pre-tax cost of debt (kd? (6 points) (Hint: calculate 5 weighted average of costs of debt and debt) 7.0046 6.74%