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In the calculation of the component cost of a firm's debt, the yield-to-maturity on the firm's bonds must be adjusted for the tax-deductibility of interest
In the calculation of the component cost of a firm's debt, the yield-to-maturity on the firm's bonds
must be adjusted for the tax-deductibility of interest expense.
must be adjusted for expected capital gains or losses on the bonds.
must be adjusted for depreciation.
is equal to the component cost of debt.
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