Solution-Before-tax cost of capital for this debt financing

Before-tax cost of capital for this debt financing

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Reference no: EM131387580

DMB, Inc. sells $100 million worth of 26-year to maturity 12.32% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $858 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. Use Excel or the financial calculator.

Reference no: EM131387580

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Before-tax cost of capital for this debt financing : DMB, Inc. sells $100 million worth of 26-year to maturity 12.32% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $858 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

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Before-tax cost of capital for this debt financing

Reference no: EM131387580

Reference no: EM131387580

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