Mary carey a clever 3360 student has borrowed 125000 at 8


1) Mary Carey, a clever 3360 student, has borrowed $125,000 at 8% from her parents. She is asking Dragon Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. If they both agree, what is Mary's before-tax cost of capital? Answer as a number like 12.3 which means 12.3%

2) If Mary has to pay 30% taxes, what is her cost of capital AFTER taxes? Answer as above.

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Business Economics: Mary carey a clever 3360 student has borrowed 125000 at 8
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