Aftertax cost in percent of the new loan
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To raise money to finance the capital budget projects you've been evaluating, your firm plans to borrow money at an interest rate of 14%, before-tax. If your firm's effective tax rate is 40%, what is the aftertax cost in percent of the new loan?
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Response provides guidance regarding computation of aftertax cost in percent of the new loan
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To raise money to finance the capital budget projects you've been evaluating, ...
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