after tax cost of debt = pre tax cost of debt * (1- tax rate)
= YTM * (1 - tax rate)
= 10% * (1-0.25)
= 7.5%
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)
= 10 * ( 1 - 0.25)
= 7.50 % (ANSWER)
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