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Question 19 (3 points) You are trying to estimate a company's cost of debt. It...

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Question 19 (3 points) You are trying to estimate a company's cost of debt. It has a book value of debt of $760 million, interest expense of $11.3 million, and operating income of $47.8 million last year. The risk-free rate is 1.05%. Use the information below to estimate the company's cost of debt based on its synthetic bond rating. Enter your answer in percentage and keep two decimal places. For example, if your answer is 11.11%, enter 11.11. Credit Rating Coverage Ratio Default Spread BBB 4-4.5 1.35% BB+ 3.5-4 1.91% BB 3-3.5 2.10% Your

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