After tax cost of debt= Before tax cost of debt*(1 – tax rate)
= 5%*(1 – 0.30)
= 3.50%.
In case of any query, kindly comment on the solution.
Problem 11-4 Aftertax cost of debt [LO11-3] Telecom Systems can issue debt yielding 5 percent. The...
Problem 11-5 Aftertax cost of debt [LO11-3]| Calculate the aftertax cost of debt under each of the following conditions. (Do not round in: answers as a percent rounded to 2 decimal places.) Corporate Tax Rate 15 % Aftertax Cost of Debt Yield 9.0 % 9.0% 10.0% a. b. C. 20%
Please highlight the answers 7 Problem 11-5 Aftertax cost of debt [LO11-3] Calculate the aftertax cost of debt under each of the following conditions. (Do not round im answers as a percent rounded to 2 decimal places.) points skopped Aftertax Cost of Debt согрогate Tax Rate Yield % 50% 11% а. edook 25 % % 7.0% b. 64% 21 % % Hint C. Print References Mci Graw <Prev 7 of 10 Ne Esc
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