Explore BrainMass

Explore BrainMass

    Calculate the after-tax cost of debt

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

    A. Interest rate, 13 percent; tax rate, 0 percent

    B. Interest rate, 13 percent; tax rate, 20 percent

    C. Interest rate, 13 percent; tax rate, 35 percent.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:40 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculate-after-tax-cost-debt-108028

    Solution Preview

    Theory:

    After tax cost of debt = Interest rate*(1-Tax rate)

    a) ...

    Solution Summary

    The solution provides simple, easy to understand calculations to find after tax cost of debt for each other the conditions. One reference is provided to enhance student learning.

    $2.19

    ADVERTISEMENT