After-tax cost of debt. The Heuser Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35% what is Heuser's after-tax cost of debt?© BrainMass Inc. brainmass.com June 3, 2020, 9:12 pm ad1c9bdddf
This solution provides calculations for after-tax cost of debt.