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For the purposes of determining WACC, the pre-tax cost of debt options: a) is equal to the coupon rate on the latest bonds issued by

For the purposes of determining WACC, the pre-tax cost of debt options: a) is equal to the coupon rate on the latest bonds issued by a firm. b) is based on the original yield to maturity on the latest bonds issued by a firm. c) is based on the yield to maturity of the firm's outstanding bonds. d) has to be estimated as it cannot be directly observed in the market.

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