What is before-tax cost of capital for debt financing

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Reference no: EM131309650

Black Hill, Inc. sells $100 million worth of 26-year to maturity 14.41% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $1022 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Reference no: EM131309650

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What is before-tax cost of capital for debt financing : Black Hill, Inc. sells $100 million worth of 26-year to maturity 14.41% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $1022 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

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