Interest rate 13% tax rate 0%.
Calculate the after tax cost of capital
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Interest rate 13% tax rate 0%.
Calculate the after tax cost of capital
If the tax rate is 0%, then the answer is 13%.
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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