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What is the aftertax cost in percent of the new loan

Question:

To raise money to finance the capital budget projects you've been evaluating, your firm plans to borrow money at an interest rate of 14%, before-tax. If your firm's effective tax rate is 40%, what is the aftertax cost in percent of the new loan?

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Finance Basics: What is the aftertax cost in percent of the new loan

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Finance Basics: What is the aftertax cost in percent of the new loan

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