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The after-tax cost of debt is less than the required rate of return because a. investors understand that companies have large expenses to cover. b.

The after-tax cost of debt is less than the required rate of return because a. investors understand that companies have large expenses to cover. b. interest expense is added to the cost of debt. c. interest on debt can be deducted for tax purposes. d. investors consider a portion of their return should stay with the company to allow growth

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