Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 34

A company that makes several different types of skateboards, Jennings Outdoors, incurred interest expenses of $1,200,000 per year from various types of debt financing. The company borrowed $19,000,000 in year 0 and repaid the principal of the loans in year 15 in a lump-sum payment of $20,000,000. If the company's effective tax rate is 29%, what was the company's cost of debt capital
a) before taxes and b) after taxes