Accountancy, asked by alfaazahmed25, 7 months ago

The interest rate of debt is 12% and the tax rate is 40%. The after tax cost of debt will be

Answers

Answered by pareekabhimanyu33
3

Answer:

7.2 %

Explanation:

Cost of Debt = 12 %

Tax Rate = 40 %

Post Tax Cost of Debt = 12 * 0.60 = 7.2

Similar questions