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Calculate the after-tax cost of debt

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Reference no: EM131524748

Question: Calculate the after-tax cost of debt under each of the following conditions:

a. Interest rate, 13 percent; tax rate, 0 percent.

b. Interest rate, 13 percent; tax rate, 20 percent.

c. Interest rate, 13 percent; tax rate, 35 percent

Reference no: EM131524748

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