What is the after-tax cost of debt for a firm if it pays at 21% of tax rate, and pays 15% on its debt

asked Feb 28, 2021 85.0k views

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6 votes

Answer:

= 11.85%

Step-by-step explanation:

After tax cost of debt = (1 - tax rate) x debt

(1 - 0.21) x 15%

0.79 x 15% = 11.85%

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