The dollar cost of debt for John Galt Industries is 8.0%. The firm

faces a tax rate of 40% on all income, no matter where it is earned.

Galt needs to know its Yen cost of debt. The risk-free interest rates

on dollars and yen are r% = 6% and r = 2%, respectively. Galt is

willing to assume that capital markets are internationally integrated

and that its free cash flows are uncorrelated with the yen-dollar spot

rate. Galt's after-tax cost of debt in yen is?

calculation steps?