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A firm can borrow at an interest rate of 10%. Its marginal tax rate is 40%. What is its cost of debt?

 a.10% 

 b.14% 

 c.6% 

 d. None of the above is correct.

Logistics ERP Project Management Business Development Management
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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/08/03
Upvote (1) Views (16) Followers (9) Answers (7) Report Question
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Ismael Hamad
by Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

I agree with  gentlemen above

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

6% is the answer. Thanks.****************

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

 

 c.6%

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khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

I go with answer of all experts................

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+

I agree with the given answers of option (C) 6%

Faisal Saeed
by Faisal Saeed , Financial, TAX and ERP Manager , KCL Private Limited

Correct Answer  is option c =6%

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>>>>>>>>>> The correct answer was: c.6%. 

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