a business in the 45 percent tax bracket is considering
a business in the 45 percent tax bracket is considering borrowing money at 10 percent.a. what is the after-tax interest rate on the debt?b. what is the after-tax interest rate if only half of the interest expense is allowed as a tax deduction?c. would your answer change if the firm is losing money now and does not expect to have taxable income for three years?
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