Cost of debt and t is the marginal tax rate,

Reference no: EM13962745

Assume k is the cost of debt and t is the marginal tax rate, the after-tax cost of debt, ki, is best represented by the formula

1.	ki = k/t
2.	ki = k/(1-t)
3.	ki = tk
4.	ki = k - tk

Reference no: EM13962745

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