COST OF CAPITAL - Babson College
Thus, the after-tax cost of interest is (1-Tc)* rdebt. So, for example, if the debt rate is 10% and the corporate tax rate is 34%, the after-tax cost of interest is 10%*(1-.34) = 6.6%. Therefore, the weighted average cost of capital should take into account the fact that interest is tax-deductible while dividends are not. ................
................
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- theory cpa diary
- chapter 21 capital structure
- the steps are
- valuation measuring and managing the value of companies
- mergers and the cost of capital
- chapter 13 the cost of capital
- part ii the cost of capital exinfm
- cost of capital babson college
- opportunity cost of capital
- cost of capital downgrade mania there goes the cheap money
Related searches
- opportunity cost of capital formula
- cost of capital calculator
- why is cost of capital important
- opportunity cost of capital calculator
- what does cost of capital measure
- cost of capital measures
- cost of capital calculation example
- cost of capital rate
- calculating cost of capital formula
- cost of capital formula
- cost of capital formula examples
- cost of capital example