A corporation borrows $1,000,000 at 10 percent annual rate of interest.The firm has a 21 percent tax rate.The yearly,after-tax cost of this debt is ________.

Name: A corporation borrows $1,000,000 at 10 percent annual rate of interest.The firm has a 21 percent tax rate.The yearly,after-tax cost of this debt is ________.
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The after-tax cost of debt is calculated as the interest expense multiplied by (1 - tax rate). Here, it is $1,000,000 * 10% * (1 - 0.21) = $79,000.

A Corporation Borrows $1,000,000 at 10 Percent Annual Rate of Interest.The