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    Financial Management Theory and Practice Study Set 4
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    Exam 21: Dynamic Capital Structures and Corporate Valuation
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    In the Compressed Adjusted Present Value Model, the Appropriate Discount
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In the Compressed Adjusted Present Value Model, the Appropriate Discount

Question 26

Question 26

True/False

In the compressed adjusted present value model, the appropriate discount rate for the tax shield is the after-tax cost of debt.

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