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podryga [215]
3 years ago
9

IM GONNA CRY MY EYES OUT PLEASE HELP ME Type the correct answer in the box. Spell the words correctly.

Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Answer: 3%

Explanation:

Interest is tax deductible which means that companies are charged taxes only after they pay off the interest they owe on debt.

In order to calculate the after-tax cost of debt, use the following formula:

= Interest rate * ( 1 - tax rate)

= 5% * ( 1 - 40%)

= 3%

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