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    Intermediate Financial Management Study Set 2
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    Exam 10: Determining the Cost of Capital
  5. Question
    The Cost of Debt Is Equal to One Minus the Marginal
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The Cost of Debt Is Equal to One Minus the Marginal

Question 40

Question 40

True/False

The cost of debt is equal to one minus the marginal tax rate multiplied by the coupon rate on outstanding debt.

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