Question - Harley Davidson, Inc. (HOG) has $5.1 billion in total debt (which approximates its market value). Interest expense for the year was about $46.0 million. The company's market capitalization is approximately $11.0 billion, its market beta is 2.16, and its assumed tax rate is 37%. Assume that the risk-free rate equals 2.5% and the market premium equals 5%. Rounding Instructions: Do not round until your final answers. Round answers to one decimal place.
Estimate Harley Davidson's cost of debt capital.