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For a firm paying 5% for new debt, the higher the firm's tax rate the higher the after-tax cost of debt. the lower the after-tax
For a firm paying 5% for new debt, the higher the firm's tax rate
the higher the after-tax cost of debt. | |
the lower the after-tax cost of debt. | |
after-tax cost is unchanged. | |
Not enough information to judge. |
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