What is the after tax cost of debt if interest rate is 13% and tax rate is 20%
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What is the after tax cost of debt if interest rate is 13% and tax rate is 20%
Example:-
Debt = $1,000.00
Interest for 1 year = $130.00
Tax on $130.00 @ 20% = $26.00
After Tax Cost of Debt = $104.00
Rate = 10.4%.
Shi Importers balance sheet shows $300 million in preferred stock and $250 million in total equity
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