$1$

$21.$ You take out a $$500$ loan at $7\%$ from Bank A and a $$1,000$ loan at $12\%$ from Bank $B.$ What is your weighted average $3$ cost of borrowing with the two loans before taxes? What is your overall cost of borrowing if you are in the $35\%$ tax $4$ bracket?

$\backslash$table$[[5,,],[6,$BANKALOAN,$],[7,$BANK ARATE,$],[8,$BANK B LOAN,$],[9,$RATE,$],[10,$TAX RATE,$],[11,$BEFORE$-$TAX COST,$],[12,$AFTER$-$TAX COST,$],[13,,],[14,,]]$

A firm has $$185$ in equity at a cost of $12\%$ and $$65$ in debt at a cost of $7\%$ before taxes. If the firm's tax rate is $40\%,$ what is its adjusted WACC?

$17$

$18$

$19$

$20$

$21$

$22$

$23$

$24$