Black Hill Inc. sells $100 million worth of 13-year to maturity 11.40% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond.
Black Hill Inc. sells $100 million worth of 13-year to maturity 11.40%
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.
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