freemont, inc., plans to offer a bond issue but first wants to estimate the cost of debt capital. the corporation plans to issue 2,000 bonds at 7% with $1,000 face value. freemont’s investment bankers estimate the market rate to be 7% when the corporation issues its bonds. freemont’s effective tax rate is 37%. what percentage is the estimated cost of debt capital of freemont’s planned issuance?
