Category: Bookkeeping

If we assume the company has a pre-tax debt cost of 6.5% and the tax rate is 20.0%, the after-tax debt cost is 5.2%. To tax affect the pre-tax cost of debt, the rate must be multiplied by one minus the tax rate. One rule to abide by is that the discount rate and represented

If we assume the company has a pre-tax debt cost of 6.5% and the tax rate is 20.0%, the after-tax debt cost is 5.2%. To tax affect the pre-tax cost of debt, the rate must be multiplied by one minus the tax rate. One rule to abide by is that the discount rate and represented

As you can see in the example above, a nominal interest rate of 8.0% with 12 compounding periods per year equates to an effective annual percentage rate (EAPR) of 8.3%. An effective annual interest rate is the actual return on an investment or savings account when the rate is adjusted for compounding over a given

To understand how to calculate the percentage of a number, let’s work through an example. You’ve just scored 83 out of 125 in your geography exam, and you’re interested in your score in terms of a percentage. P is the percentage, V1 is the first value that the percentage will modify, and V2 is the