In: Accounting
CISCO SYSTEMS INC had the following balance sheet information (in millions) at the end of July, 2014 and 2015. Total assets were $105,134.0, and $113,481.0, respectively. Total liabilities were $48,473.0, and $53,774.0, respectively. For the years ended July, 2014 and 2015 CISCO SYS's sales were $47,142.0 and $49,161.0, and its net income was $7,854.0 and $8,979.0, respectively. Assume that the company has an effective tax rate of 30% and an average cost of debt financing of 10%, calculate the cost of financing for CISCO SYS for 2015?
Note: Only cost of debt financing is given below since cost of debt is given
For equity financing cost of equity is needed.