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View Full Version : Interest rate 13%, Tax rate 0% -Calculate the after tax cost of debt

vvarug
Apr 4, 2010, 06:17 PM
Interest rate 13% tax rate 0%.
Calculate the after tax cost of capital
ROLCAM
Apr 5, 2010, 04:09 AM
If the tax rate is 0%, then the answer is 13%.
pready
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%