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Problem 9-1 After-Tax Cost of Debt Calculate the after-tax cost of debt under each of the following conditions: Interest rate of 12%; tax rate of

Problem 9-1 After-Tax Cost of Debt

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

  1. Interest rate of 12%; tax rate of 0%. Round your answer to two decimal places.
  2. Interest rate of 12%; tax rate of 25%. Round your answer to two decimal places.
  3. Interest rate of 12%; tax rate of 40%. Round your answer to two decimal places.

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