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The aftertax cost of debt: varies inversely to changes in market interest rates. will generally exceed the cost of equity if the relevant tax rate
The aftertax cost of debt:
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varies inversely to changes in market interest rates.
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will generally exceed the cost of equity if the relevant tax rate is zero.
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will generally equal the cost of preferred if the tax rate is zero.
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is unaffected by changes in the market rate of interest.
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is highly dependent upon a company's tax rate.
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