Interest expense is100,000 * 9% = 900,000.

Due to the "tax baffle", the after-tax interest expense is 900,000 * (1-25%) = 675,000.

Guarantee fee1000 * 3% = 300,000, and the expenses incurred for fund-raising shall be deducted from the fund-raising amount; 65,438+00% of the loan amount, that is, 654,380+00,000, is restricted for use. If deducted from the raised funds, the actual raised funds are1000-30-100 = 8.7 million.

Cost of capital =67.5/870=7.76%