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The actual cost to the firm, is the before-tax interest rate (yield) on debt, rd , less the tax saving that results because interest is

The actual cost to the firm, is the before-tax interest rate (yield) on debt, rd , less the tax saving that results because interest is tax deductible.

A.

after tax cost of debt
B.

before tax cost of debt
C.

debt to equity ratio
D.

debt management

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