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    Principles of Managerial Finance
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    Exam 7: Stock Valuation
  5. Question
    The Tax Deductibility of Interest Lowers the Cost of Debt
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The Tax Deductibility of Interest Lowers the Cost of Debt

Question 173

Question 173

True/False

The tax deductibility of interest lowers the cost of debt financing, thereby causing the cost of debt financing to be lower than the cost of equity financing.

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