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Which of the following is the reason why we deduct taxes to the cost of debt when calculating the WACC? a. Interest paid on debt

Which of the following is the reason why we deduct taxes to the cost of debt when calculating the WACC?

a. Interest paid on debt is tax-deductible b. Debt is less risky than stock c. Debt has a residual claim on firm cash flows d. Dividends are not taxable e. Debt is more expensive than equity

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