The before tax cost of debt for a firm

Reference no: EM131031262

1. The before-tax cost of debt for a firm, which has a marginal tax rate of 40 percent, is 12 percent. The after-tax cost of debt is ________.

a. 4.8 percent.
b. 7.2 percent.
c. 12 percent.
d. 6.0 percent.

Reference no: EM131031262

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The before tax cost of debt for a firm : The before-tax cost of debt for a firm, which has a marginal tax rate of 40 percent, is 12 percent. The after-tax cost of debt is ________.a. 4.8 percent.b. 7.2 percent.c. 12 percent.d. 6.0 percent.

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