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A company has a $200 000 million loan with a 10% interest rate and a $320,000 loan with an 9% rate. The companys tax rate

A company has a $200 000 million loan with a 10% interest rate and a $320,000 loan with an 9% rate. The companys tax rate is 18%. Find the average interest rate, and its pretax cost of debt. And find the after-tax cost of debt.

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A company has a $200 000 million loan with a 10% interest rate and a $320,000 loan with an 9% rate. The companys tax rate is 18%. Find the average interest rate, and its pretax cost of debt. And find the after-tax cost of debt.

Answer text

A company has a $200 000 million loan with a 10% interest rate and a $320,000 loan with an 9% rate. The companys tax rate is 18%. Find the average interest rate, and its pretax cost of debt. And find the after-tax cost of debt.

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