Business, 25.03.2020 05:00 jdenty3398

The before tax cost of debt for a firm which has a marginal tax rate of 30% is 12%. Therefore the cost of debt that should be used in calculating the cost of capital for capital budgeting purposes is:

a. 3.6%
b. 6%
c. 8.4%
d. 30%

Answers: 3

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The before tax cost of debt for a firm which has a marginal tax rate of 30% is 12%. Therefore the co...