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Tax cost of capital for this debt financing

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Reference no: EM131402301

Black Hill Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form. 

You should use Excel or financial calculator.

Reference no: EM131402301

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