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Commerce · Q589

Business Finance

Graduate and Post Graduate · Commerce · question 589

Q589

After tax cost of debt capital is calculated by

A.
(1 + tax rate) × CB (before tax)
B.
CB (before tax) × (1 - tax rate)
C.
(1 - tax rate) × CB (before tax)
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
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