O’Grady Apparel
Cost of Financing and Break Points
Source of Capital
Range of new financing
After-tax cost (%)
Long-term debt $0-$700,000 7.50% 25% 2,800,000
Capital
Structu
re
Weight
Break
Point
(max of
low
range/cap
ital
structure
weight
Parts a
and b(1)
