The After-Tax Cost of Debt Is Found By

Multiple Choice

The after-tax cost of debt is found by:

A) dividing the before-tax cost of debt by (1 - the corporate tax rate) .
B) subtracting (1 - the corporate tax rate) from the before-tax cost of debt.
C) multiplying the before-tax cost of debt by (1 - the corporate tax rate) .
D) subtracting the corporate tax rate from the before-tax cost of debt.