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Stinson Corporation's cost of debt financing is 6%. Its tax rate is 30%. Required: Calculate the...

Stinson Corporation's cost of debt financing is 6%. Its tax rate is 30%. Required: Calculate the after-tax interest rate.

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Answer #1

after-tax interest rate is equal to=6*(1-tax rate)

=6*(1-0.3)

which is equal to

=4.2%

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