Assume k is the cost of debt and t is the marginal tax rate


Assume k is the cost of debt and t is the marginal tax rate, the after-tax cost of debt, ki, is best represented by the formula

1. ki = k/t
2. ki = k/(1-t)
3. ki = tk
4. ki = k - tk

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Finance Basics: Assume k is the cost of debt and t is the marginal tax rate
Reference No:- TGS01269206

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