After-tax cost of debt=yield to maturity*(1-tax rate)
=12*(1-0.25)
which is equal to
=9%
SOLUTION :
After tax cost of debt :
= Pre tax cost of debt * ( 1 - Tax rate in decimals)
= Yield to maturity in percentage * ( 1 - Tax rate in decimals)
= 12 * ( 1 - 0.25)
= 9.00 % (ANSWER)
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