1. Using the information below, calculate an after-tax weighted-average cost of debt capital, assuming a corporate income tax rate of 40%. All debt obligations are long-term obligations.
Type of debt obligation
Amount
Interest rate
Bonds Payable
€1.000.000
5%
Bonds Payable
€8.000.000
6.3%
Bank loan
€3.500.000
8.5%
10.5%