The After-Tax Cost of Debt Is Found By

question 67

Multiple Choice

The after-tax cost of debt is found by:

• A) dividing the before-tax cost of debt by (1 - the corporate tax rate).
• B) subtracting (1 - the corporate tax rate) from the before-tax cost of debt.
• C) multiplying the before-tax cost of debt by (1 - the corporate tax rate).
• D) subtracting the corporate tax rate from the before-tax cost of debt.

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