How do I calculate Long Term debt average interest rate, and after tax average interest rate?
A. The average interest rate on long-term debt is usually found in a note to the financial statements which discusses debt. Look in the company’s annual report. There is also a note in the financial statements that calculates the company’s effective tax rate. It is generally equal to: Income tax expense/Net income before taxes. You can use this information to calculate the after-tax average interest rate.
