Barney Corporation's cost of debt financing is 8.5 percent. Its tax rate is 35 percent. Required: Calculate

Question:

Barney Corporation's cost of debt financing is 8.5 percent. Its tax rate is 35 percent.

Required:

Calculate the after-tax interest rate to three decimal places.

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...