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Which of the flowing statements about tax effects on capital components is true? A) There is a direct tax effect on the cost of debt.
Which of the flowing statements about tax effects on capital components is true?
A) There is a direct tax effect on the cost of debt.
B) There is a direct tax effect on the cost of preferred stock.
C) There is a direct tax effect on the cost of common equity.
D) There is a direct tax effect on debt, preferred stock, and common equity.
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