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Question 4 2 pts The after tax or effective cost of debt is reduced by the tax savings since interest payments on debt are tax

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Question 4 2 pts The after tax or effective cost of debt is reduced by the tax savings since interest payments on debt are tax deductible. True False Question 5 2 pts One can estimate the cost of common equity by using the capital asset pricing model that says cost of common equity = riskfree rate + beta of the stock x (return on market portfolio - riskfree rate). True False

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