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    Practical Financial Management Study Set 1
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    Exam 13: Cost of Capital
  5. Question
    The Only Reason for the Difference Between the Effective Cost
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The Only Reason for the Difference Between the Effective Cost

Question 110

Question 110

True/False

The only reason for the difference between the effective cost of capital and investors' returns is the tax effect of interest payments, which reduces the firm's cost of debt.

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