Question 6 please

4:10 Instagram Answer 1 of 1 Done 1. Cost of Debt Interest/Total debt =15000/200000= 8% 2 Particulars Amount Total Cashflow s 50,000.00 Less: Interest $ 15,000.00 Profit $ 35,000.00 Allison's share (25%) S 8.750.00 Funds raised S 1,00,000.00 Cost of Equity 8.75% Source of Fund Amount Weight Formula 3 Debt $ 2,00,000.00 0.67 amount of debt total funds 4 Equity S 1,00,000.00 0.33 amount of equity/ total funds Total $ 3,00,000.00 5. Cost of Debt (after tax)= cost of debt* (1-tax rate) = 8*(1-.30) =5.25% 4:10 Instagram Answer 1 of 1 Done 1. Cost of Debt Interest/Total debt =15000/200000= 8% 2 Particulars Amount Total Cashflow s 50,000.00 Less: Interest $ 15,000.00 Profit $ 35,000.00 Allison's share (25%) S 8.750.00 Funds raised S 1,00,000.00 Cost of Equity 8.75% Source of Fund Amount Weight Formula 3 Debt $ 2,00,000.00 0.67 amount of debt total funds 4 Equity S 1,00,000.00 0.33 amount of equity/ total funds Total $ 3,00,000.00 5. Cost of Debt (after tax)= cost of debt* (1-tax rate) = 8*(1-.30) =5.25%