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What is the after tax cost of debt on a $345000 loan given a 9% interest rate and 28% tax bracket?

8.9%
$22,356
6.48%
$36,000

Brown Street Grocers has a cost of equity of 10.68 percent, a pre-tax cost of debt of 5.4 percent, and a tax rate of 33 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.6?

7.24 percent
8.03 percent
9.65 percent
11.60 percent
9.25 percent

© BrainMass Inc. brainmass.com September 24, 2018, 3:54 pm ad1c9bdddf - https://brainmass.com/business/weighted-average-cost-of-capital/444809

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