If the before-tax cost of debt is 7% and the firm % has a 40% marginal tax rate, the after-tax cost of a % debt is 2.8%. Select one: O True False Previous page Next pag Jump to... Return to: Topic 1-3 Incentive compensation based on accounting profits is the preferred method because accounting profits are audited and disclosed to all investors through SEC filings. Select one: O True O False Previous page Next pa Jump to... Return to: Topic 1 )