Question 3 20 pts Which of the following statements is NOT correct? When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation All of the choices are correct A firm's cost of retained earnings is the rate of return stockholders require on a firm's common stock The before-tax cost of common stock is the same as the after-tax cost of common stock because the dividends expenses are not tax deductible expenses for the issuing firms The component costs of capital are market-determined variables in the sense that they are based on investors' required returns Previous Next