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Which of the following statements about cost of debt is incorrect? Cost of debt can be estimated using matching by credit ratings of firms bonds.

Which of the following statements about cost of debt is incorrect?

Cost of debt can be estimated using matching by credit ratings of firms bonds.

Cost of debt can be found by using the weighted average of the coupon rate of firms bonds.

Cost of debt can be estimated by finding YTM on firms existing bonds

We need to adjust tax effect for cost of debt

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