As the Financial vice president for Bear Enterprises, you have the following inf

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As the Financial vice president for Bear Enterprises, you have the following information:                                                                                                        

Expected net income after tax next year before new financing : $60,000,000

Sinking Fund payments due next year on existing debt: $20,000,000

Interest due next year on existing debt $18,000,000

Conpany Tax rate                            25%

Common Stock Price, per share               $17

Common Shares outstanding: 22,000,000

For next year assume the firm raises $60 Million of new debt at an interest rate of 9 percent.

Calculate Bear's Interest Rate

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