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Outstanding debt of Home Depot trades with a yield to maturity of ​%. The tax rate of Home Depot is . What is the effective cost of debt of Home​ Depot?

Respuesta :

Parrain

Answer: 3.6%

Explanation:

The effective cost of debt is the interest rate adjusted for taxes so it is expressed by;

= Interest (1 - tax rate)

= 6% ( 1 - 40%)

= 3.6%

cloreox

Answer:

3.6%

Explanation:

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