Question 11 The after-tax cost of debt is lower than the before-tax cost of debt. The reason is that: Companies can claim tax credit of interest payments. Bondholders can claim tax credit of interest payments. O Bondholders can deduct interest payments from taxable incomes. Companies can deduct interest payments from taxable incomes. 1 pts

The after-tax cost of debt is lower than the before-tax cost of debt. The reason is that: Companies can claim tax credit of interest payments. Bondholders can claim tax credit of interest payments. Bondholders can deduct interest payments from taxable incomes. Companies can deduct interest payments from taxable incomes