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Before-tax interest expense is 12% and the firm's marginal tax rate is 40%. What is the after-tax component cost of debt? a. 7.20% b. 7.2
Before-tax interest expense is 12% and the firm's marginal tax rate is 40%. What is the after-tax component cost of debt?
a. 7.20%
b. 7.2 times
c. 17.4 times
d. US$17.14
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
