The before-tax cost of debt, which is lower than the after-tax cost, is used as the component cost of debt for purposes of developing the firm's WACC.

For each statement, please indicate whether you agree or disagree with the statement (ie, true/false) and, in 1-3 sentences or a mathematical theorem, explain why you agree or disagree. If you think the statement is false, you can correct it to make it true. If the statement is true, use evidence or an example