Question

Asked Nov 24, 2019

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What is the company's pretax cost of debt? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Pretax cost of debt %

If the tax rate is 35 percent, what is the aftertax cost of debt? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Aftertax cost of debt %

Step 1

**Calculation of Pre-tax Cost of Debt and After-tax Cost of Debt:**

The pre-tax cost of debt is **8.28%** and after-tax cost of debt is **5.38%**.

**Excel Spreadsheet:**

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