To find the after-tax cost of debt for a corporation,one needs to multiply the before-tax cost of debt by (1 + Tc),where Tc = the corporate tax rate.

Name: To find the after-tax cost of debt for a corporation,one needs to multiply the before-tax cost of debt by (1 + Tc),where Tc = the corporate tax rate.
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The after-tax cost of debt is calculated by multiplying the before-tax cost of debt by (1 - Tc), where Tc is the corporate tax rate. This accounts for the tax shield provided by interest expenses.

To Find the After-Tax Cost of Debt for a Corporation,one