Blackwater Adventures has a bond issue outstanding that matures in sixteen years. The bonds pay interest...

Blackwater Adventures has a bond issue outstanding that matures in sixteen years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 103 percent of face value and carry a 9 percent coupon. The firm’s tax rate is 34 percent. What is the firm’s before-tax cost of debt?

options:

	5.19 percent
	11.41 percent
	7.86 percent
	8.65 percent
	5.71 percent

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jeff jeffy answered 1 year ago

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