How to find the cost of debt

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May 17, 2015 at 2:49 pm #246582
Smith
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Finding the cost of debt of a bank loan is the interest% * (1-T) yes? So if the interest rate of the bank loan is 7% then the cost of debt will be, given a tax rate of 30%. 7*(1-0.3) = 4.9% right?
May 17, 2015 at 4:09 pm #246604
John Moffat
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That is correct 🙂
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