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Considering the case that individuals can deduct the interest, makes the tax after cost more popular than the before tax. A business will typically use different bonds, loans, and different techniques for debt. This is a measure that individuals pay to a business to use the debt financing. This means of measurement is a good opportunity for investors to get an idea of how risky the business endeavors are when compared to other companies. This is because a riskier business will typically have an increased cost of their debt. "In order to obtain the after tax rate, you must multiply the before tax rate by one minus the marginal rate (before tax rate X (1-marginal tax))...
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