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Calculate the cost of debt after taxes under the following conditions: Interest rate, 13%; tax rate, 0%. Interest rate, 13%; tax rate, 20%. Interest rate,

Calculate the cost of debt after taxes under the following conditions:


  • Interest rate, 13%; tax rate, 0%.
  • Interest rate, 13%; tax rate, 20%.
  • Interest rate, 13%; tax rate, 35%.

Reference book:

Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition


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