Question

The cost (interest rate) of the loan Jackie needs for her business is 8 percent per year. Given that the company’s net income will fall by less than the amount of interest paid, is Jackie correct to think that the after-tax cost of the loan is lower than 8 percent? With a tax rate of 25 percent, what is the after-tax cost of this loan?



$1.99
Sales0
Views62
Comments0
  • CreatedFebruary 25, 2015
  • Files Included
Post your question
5000