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Chapter 11 Assignment S4d Help Save&Exit Submit Check my work 2 Calculate the attertax cost ot debt under each of the tollowi

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After tax cost of debt= Before tax cost of debt*(1-tax)

a.After tax cost of debt= 6%*(1-0.20)

                                           = 6% * 0.80= 4.80%

b.After tax cost of debt= 6.60%*(1-0.35)

                                            = 6.60%* 0.65 = 4.29%.

c.After tax cost of debt= 5%*(1-0.15)

                                           = 5%*0.85 = 4.25%.

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