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22. Simple Foods has a balance of long- term debt of $400,000, short-term debt of $50,000, total liabilities of $670,000, common equities of $900,000. The
22. Simple Foods has a balance of long- term debt of $400,000, short-term debt of $50,000, total liabilities of $670,000, common equities of $900,000. The interest expense is $40,000 and net income is $250,000. What is the company's after-tax cost of debt if the tax rate is 40 percent? (1 Point) 7 percent 6 percent 5,5 percent 5 percent None of the above
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