Calculate the after-tax cost of debt under each of the following conditions: (a) Interest rate, 12%; tax

Question:

Calculate the after-tax under each of the following conditions:
(a) Interest rate, 12%; tax rate, 25%
(b) Interest rate, 14%; tax rate, 34%
(c) Interest rate, 15%; tax rate, 40%
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...