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What is before-tax cost of capital for given debt financing

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Finance: Before and after-tax cost of debt financing

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Black Hill Inc. sells $100 million worth of 21-year to maturity 8.91% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $988 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Reference no: EM131394435

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