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A firm has an average rate on its debt of 10% and faces a tax rate of 20%. What is the firm's after-tax cost of
A firm has an average rate on its debt of 10% and faces a tax rate of 20%. What is the firm's after-tax cost of debt?
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8%
20%
10%
0%
When estimating a division's cost of capital, you should?
Group of answer choices
Treat the division like a separate firm.
Use the industry averages.
Use the firm's WACC.
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