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2 October, 11:05

What is the advantage of calculating the cost of debt after taxes?

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  1. 2 October, 13:59
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    The after-tax cost of debt is the interest rate on the debt multiplied by (100% minus the incremental income tax rate). For instance, if a corporation's debt has an annual interest rate of 10% and the corporation's combined federal and state income tax rate is 30%, the after-tax cost of debt is 7% ...
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