A firm can borrow at an interest rate of 10%. Its marginal tax rate is 40%. What is its cost of debt?

Question

a.10%

b.14%

c.6%

d. None of the above is correct.

Ismael Hamad · Answer

I agree with gentlemen above

Gayasuddin Mohammed · Answer

6% is the answer. Thanks.****************

Yaqoub Alomar · Answer

c.6%

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khaled elkholy · Answer

I go with answer of all experts................

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+ · Answer

I agree with the given answers of option (C) 6%

Faisal Saeed · Answer

Correct Answer is option c =6%

Emad Mohammed said abdalla · Answer

>>>>>>>>>>>>>>>> The correct answer was: c.6%.