?
A formula of after-tax component cost of debt is
Answer & Solution
Correct Answer:
Option
A
A formula of after-tax component cost of debt is interest rate-tax savings. Cost of debt refers to the effective rate a company pays on its current debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company's cost of debt before taking taxes into account.
Join the Discussion
Login to post a comment or share your explanation.
Login