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Which of the following statements regarding the cost of debts is(are) true? I. The cost of debt is the interest rate that a firm must

Which of the following statements regarding the cost of debts is(are) true? I. The cost of debt is the interest rate that a firm must pay on its new debt. II. The coupon rate of outstanding bonds is the best measure of the cost of debt for a firm. III. Firms should never consider the after-tax cost of debt when calculating WACC.

I only

II only

III only

I and II only

I and III only

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