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Which of the following is correct? The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.

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Which of the following is correct? The component costs of capital are market-determined variables in the sense that they are based on investors' required returns. The cost of debt is equal to one minus the tax rate multiplied by the average coupon rate on all outstanding debt. All of the above are correct. None of the above is correct

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