Starlight Corporation has accounts payable of $200,000 (a typical amount for the company, non-interest bearing), a bank loan of $300,000 at 8% interest rate, a bank loan of $500,000 at 7% interest rate, and equity of $1,400,000. Its income tax rate is 31%. Management estimates the companys cost of equity is 14%.

37. What is the companys after-tax cost for each of its two bank loans?