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After tax weighted-average cost of debt capital

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Reference no: EM131827207

Using the information below, calculate an after -tax weighted-average cost of debt capital, assuming a corporate income tax rate of 35%. all debt obligations are long-term obligations.

Type of debt obligation Amount Interest rate

Bond payable $5,000,000 7,5%

Bank loan $2,500,000 5%

Reference no: EM131827207

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