Genetech has $4,000,000 in assets. It has decided to finance 30% with long-term financing (9% rate) and 70% with short-term financing (7%) rate. Assuming a 40% tax rate, what will its annual after-tax interest costs be?
A) $78,000
B) $126,000
C) $182,400
D) $304,000

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The Answer of Genetech has $4,000,000 in assets. It has decided to finance 30% with long-term financing (9% rate) and 70% with short-term financing (7%) rate. Assuming a 40% tax rate, what will its annual after-tax interest costs be?
A) $78,000
B) $126,000
C) $182,400
D) $304,000

Genetech Has $4,000,000 in Assets