new playground facility in Los Angeles. This year the cost of
debt is 20 percent higher; that is, firms that paid 15 percent
for debt last year will be paying 18.00 percent this year.
If the Goodsmith Charitable Foundation borrowed money
this year, what would the aftertax cost of debt be, based on
their cost last year and the 20 percent increase?
(Do not round intermediate calculations. Input your
answer as a percent rounded to 2 decimal places.)
Aftertax cost of debt