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Tobins Barbeque has a bank loan at 12% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be
Multiple Choice None of these options are true. боож, 6.00% оооо птови, 345%
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Answer #1

After tax cost of debt = Pre tax cost of debt* (1-tax rate) After tax cost of debt = 6% Pre tax rate ( Interest on bank loan

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