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Calculate the after tax cost of debt

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Reference no: EM133061617

The following information is available for Community Hospital:

Cost of Debt

4.60%

Tax Rate

23.50%

Risk Free Rate

1.55%

Beta

1.28

Equity Risk Premium (ERP)

5%

Cash, CE,&Marketable Securities

$ 31,568

Long Term Debt

$ 38,126

Net Diluted Shares Outstanding

486

Current Share Price

$ 82.27

Calculate the After Tax Cost of Debt. Report as [___________]% to two decimal places.

Reference no: EM133061617

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