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-   -   Interest rate 13%, Tax rate 0% -Calculate the after tax cost of debt (https://www.askmehelpdesk.com/showthread.php?t=462482)

  • Apr 4, 2010, 06:17 PM
    vvarug
    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
  • Apr 5, 2010, 04:09 AM
    ROLCAM

    If the tax rate is 0%, then the answer is 13%.
  • Apr 5, 2010, 07:52 AM
    pready

    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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