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In the weighted average cost of capital formula, the after-tax cost of debt is used instead of the before-tax cost of debt.However, no such adjustment

  1. In the weighted average cost of capital formula, the after-tax cost of debt is used instead of the before-tax cost of debt.However, no such adjustment is made to the cost of equity.Are you surprised by this different tax handling of debt versus equity? Why or why not?

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