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    Cost of Debt

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    Please include with your response any necessary formula to solve this problem (on a regular calculator, NOT a financial calculator), along with a detailed explanation of how to solve the problem.

    Royal Jewelers, Inc. has an after-tax cost of debt of 6 percent. With a tax rate of 40 percent, what can you assume the yield on the debt is?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:56 pm ad1c9bdddf
    https://brainmass.com/economics/personal-finance-savings/cost-debt-formula-19511

    Solution Summary

    The solution answers the question(s) below. The cost of debt formulas are examined.

    $2.19

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