Answer:
the cost of the term loan in the case when the tax rate is 5% is 14.25%
Explanation:
The computation of the cost of the term loan in the case when the tax rate is 5%
The cost of term loan = Interest rate ×(1 - Tax rate)
= 15% × (1 - 0.05)
= 14.25%
hence, the cost of the term loan in the case when the tax rate is 5% is 14.25%
The same is to be considered and relevant
