(7.9) The firm's overall measure of the cost of capital is the The dollar cost of debt is the The dollar cost of equity is The overall firm average cost of capital is the cost of equity plus the cost of debt, divided by The (7.10) Interest (is / is not) a tax-deductible expense, and dividends paid to stockholders (are / are not). The payment of interest reduces the firm's taxes by after-tax cost of debt in dollars equals The after-tax cost of debt in percentage terms is WACC =