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Why is the after-tax cost of debt rather than the before-tax cost used to calculate the weighted average cost of capital? A. because government impose
Why is the after-tax cost of debt rather than the before-tax cost used to calculate the weighted average cost of capital?
A. because government impose no tax on corporate debt
B. because corporate tax rate is so small on corporate debt, companies can ignore the tax
C. because it does not make any difference if companies count before tax or it counts after tax cost of debt.
D. because interest payments are tax deductible
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