Effective after-tax interest rate expense, Finance Basics

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Effective after-tax interest rate expense

Problem:

A firm incurs 70k in interest expenses each year. If the tax rate of the firm is 20%, what is the effective after-tax interest rate expense for the firm?

a. 37k

b. 49k

c. 52k

d. 64k

e. 56k

Note: Please show how you came up with the solution.

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Finance Basics: Effective after-tax interest rate expense

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Finance Basics: Effective after-tax interest rate expense

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Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Effective after-tax interest rate expense

Reference No:- TGS0880561

Recent Questions Asked Finance Basics

Q : Geometric average return for time period

Q : What is the net present value

Q : Payback period without discounting cash flows

Q : Npv of accepting the lockbox agreement

Q : Effective after-tax interest rate expense

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