What is the before-tax cost of capital for this debt


Black Hill Inc. sells $100 million worth of 28-year to maturity 10.29% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $991 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.

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Financial Management: What is the before-tax cost of capital for this debt
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