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12 October, 01:33

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

a. rd of 13%, tax rate of 0%

b. rd of 13%, tax rate of 20%

c. rd of 13%, tax rate of 35%

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  1. 12 October, 05:15
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    A. rd of 13%, tax rate of 0%

    0.13 * (1-0) = 0.13

    B. rd of 13%, tax rate of 20%

    0.13 (1-0.2) = 0.104

    C. rd of 13%, tax rate of 35%

    0.13 * (1-0.35) = 0.0845
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