Problem 11-3 Cost of Debt (LG11-3) Oberon, Inc.,
February 18th, 2022
Problem 11-3 Cost of Debt (LG11-3)
Oberon, Inc., has a $15 million (face value) 12-year bond issue selling for 97 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.)