The Goodsmith Charitable Foundation, which is tax$-$exempt, issued debt last year at $8$ percent to help finance a new playground facility

in Los Angeles. This year the cost of debt is $18$ percent higher; that is$,$ firms that paid $10$ percent for debt last year will be paying $11\mathrm{.}80$

percent this year.

If the Goodsmith Charitable Foundation borrowed money this year, what would the aftertax cost of debt be$,$ based on its cost last

year and the $18$ percent increase?

Note: Do not round Intermedlate calculations. Input your answer as a percent rounded to $2$ declmal places.

Aftertax cost of debt

b$.$ If the receipts of the foundation were found to be taxable by the IRS $($at a rate of $30$ percent because of involvement in political

activities$),$ what would the aftertax cost of debt be$?$

Note: Do not round Intermedlate calculatlons. Input your answer as a percent rounded to $2$ declmal places.

Aftertax cost of debt