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    Fundamentals of Corporate Finance Study Set 14
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    Exam 13: The Cost of Capital
  5. Question
    The Fact That the After-Tax Cost of Debt Is Lower
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The Fact That the After-Tax Cost of Debt Is Lower

Question 3

Question 3

Multiple Choice

The fact that the after-tax cost of debt is lower than the pretax cost of debt implicitly assumes that interest expense can be ________.


A) expensed
B) margined
C) refinanced
D) capitalized

Correct Answer:

verifed

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