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    Financial Management Theory and Practice Study Set 4
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    Exam 9: The Cost of Capital
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    The Before-Tax Cost of Debt, Which Is Lower Than the After-Tax
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The Before-Tax Cost of Debt, Which Is Lower Than the After-Tax

Question 47

Question 47

True/False

The before-tax cost of debt, which is lower than the after-tax cost, is used as the component cost of debt for purposes of developing the firm's WACC.

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