Determination of the Cost of debt (1+k)10=$1,000/$38554 =2.5938 (1+k)=(25938)110) =1.1 d =.1or10% k1=10%(1-40) k:=6% 15-815-8 (1 + kd ) 10 = $1,000 / $385.54 = 2.5938 (1 + kd ) = (2.5938) (1/10) = 1.1 kd = .1 or 10% ki = 10% ( 1 - .40 ) ki = 6% Determination of the Cost of Debt