Oberon before-tax component cost of debt

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Reference no: EM131924482

1. Compute the IRR static for Project E. The appropriate cost of capital is 7 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow –$2,800 $870 $870 $780 $560 $360

2. Oberon, Inc., has a $45 million (face value) 8-year bond issue selling for 98 percent of par that pays an annual coupon of 8.10 percent.

What would be Oberon’s before-tax component cost of debt? (Round your answer to 2 decimal places.)

Reference no: EM131924482

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