If the Tax Rate Is 25% and the Prevailing Interest

question 48

Multiple Choice

If the tax rate is 25% and the prevailing interest rate is 12%, the after tax cost of debt is:

• A) 3%.
• B) 9%.
• C) 16%.
• D) 37%.

---

Definitions:

Ankylosis

The fusion of bones across a joint, leading to loss of joint mobility and stiffness, often resulting from chronic inflammation or injury.

Condyle

A rounded projection on a bone, typically at the joint, where it connects with another bone.

Trochanter

A large, bony prominence found on the femur, serving as a major attachment point for muscles.

Fossa

A depression or hollow, often found in bones or in the body, serving various purposes like accommodating muscles or organs.