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    vvarug's Avatar
    vvarug Posts: 2, Reputation: 1
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    #1

    Apr 4, 2010, 06:17 PM
    Interest rate 13%, Tax rate 0% -Calculate the after tax cost of debt
    Interest rate 13% tax rate 0%.
    Calculate the after tax cost of capital
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Apr 5, 2010, 04:09 AM

    If the tax rate is 0%, then the answer is 13%.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Apr 5, 2010, 07:52 AM

    The equation is: After-tax cost of debt = Interest Rate * (1 - Tax Rate) or 13% * (1 - 0) or 13% * 1 = 13%
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