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please help with a-d if possible After-tax cost of debt Personal Finance Problem. Bella Wans is interested in buying a new motorcycle. Sho has decided

please help with a-d if possible image text in transcribed
After-tax cost of debt Personal Finance Problem. Bella Wans is interested in buying a new motorcycle. Sho has decided to borrow the money to pay the 520,000 purchase price of the bike. She is in the 33% income tax bracket. She can elther borrow the money at an interest rate of 5% from the motorcycle dealer, or sho. could take out a second mortgage on her home. That mortgage would corme with an intereot rate of 9%. Interest payments on the mortgage would be tax deductible for Bella, but interest payments on the loan from the motorcycle doaler could not be deducted on Bella's federal tax retum. a. Calculate the affer-fax cost of borrowing from the moloccycle dealership. b. Calculate the after-tax cost of borrowing through a second mortgage on Bolla's home. c. Which source of borrowing is less costly for Bella? d. Should Bella consider any other factors when deciding which loan to take out? a. The after-tax cost of borrowing from the motorcycle dealership is 5. (Round to the nearest wholo percontage.)

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