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How to calculate the after-tax cost of debt ?‎

 

Answer added by  irfan khalid, Senior Sales Executive, Ghantoot Group ( Bin Mehran Ready Mix Concrete)
10 years ago

The after-tax cost of debt is the interest rate on the debt multiplied by (100% minus the incremental  income tax rate).For instance, if a corporation's debt has an ... See More

 

Answer added by  Divyesh Patel, Assistant Professional Officer- Treasury, City Of Cape Town
10 years ago

After-Tax Cost of Debt = Before Tax Cost of Debt × (1 – Tax Rate)