To find the after-tax cost of debt for a corporation, one needs to mul
To find the after-tax cost of debt for a corporation, one needs to multiply the before-tax cost of debt by (1 + Tc), where Tc = the corporate tax rate.
Indicate whether the statement is true or false.
ANSWER
Answer: FALSE
Explanation: To find the after-tax cost of debt for a corporation, one needs to multiply the before-tax cost of debt by (1 – Tc), where Tc = the corporate tax rate.
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