What is the after tax cost of debt, Financial Accounting

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What is the after tax cost of debt

Response to the following problem:

The Athens Airline Company has consulted with its investment bankers and determined that they could issue new debt with a yield of 8%. If Athens' marginal tax rate is 40%, what is the after-tax cost of debt to Athens?

Provide step by step calculations.

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Financial Accounting: What is the after tax cost of debt

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Financial Accounting: What is the after tax cost of debt

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