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The cost of debt is based on the: a. initial expected return of the firm's existing debt. b. current coupon rates of the firm's existing

The cost of debt is based on the:

a. initial expected return of the firm's existing debt.

b. current coupon rates of the firm's existing debt.

c. historical average return to the firm's creditors.

d. creditors' required rate on new debt.

e. current beta of the firm and the risk-free rate of debt.

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