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Why must the cost of debt be adjusted for taxes? Multiple choice question. All sources of external financing, including the cost of debt, are adjusted

Why must the cost of debt be adjusted for taxes? Multiple choice question. All sources of external financing, including the cost of debt, are adjusted for taxes Because interest on debt is tax deductible which lowers the firm's total cost of debt financing Because interest payments on bonds are paid with after-tax profits The cost of debt should not be adjusted for taxes.

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