Ask Question
12 September, 04:57

Calculate the after-tax cost of debt under each of the following conditions:

a. rd of 13%, tax rate of 0%

b. rd of 13%, tax rate of 20%

c. rd of 13%, tax rate of 35%

+3
Answers (1)
  1. 12 September, 05:09
    0
    A. rd of 13%, tax rate of 0%

    0.13 * (1-0) = 0.13

    B. rd of 13%, tax rate of 20%

    0.13 (1-0.2) = 0.104

    C. rd of 13%, tax rate of 35%

    0.13 * (1-0.35) = 0.0845
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Calculate the after-tax cost of debt under each of the following conditions: a. rd of 13%, tax rate of 0% b. rd of 13%, tax rate of 20% c. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers