A company has a borrowing rate of 15 percent and a tax rate of of 30 percent. What is its aftertax cost of debt?
Answer: 15% * (1 - 0.3) = 10.5%
A company has a borrowing rate of 15 percent and a tax rate of of 30 percent. What is its aftertax cost of debt?
Answer: 15% * (1 - 0.3) = 10.5%
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.