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Assume k is the cost of debt and t is the marginal tax rate, the after-tax cost of debt, ki, is best represented by the
Assume k is the cost of debt and t is the marginal tax rate, the after-tax cost of debt, ki, is best represented by the formula
1. | ki = k/t |
2. | ki = k/(1-t) |
3. | ki = tk |
4. | ki = k - tk |
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