cost of debt is equal to one minus the marginal tax rate multiplied by the average coupon rate on all outstanding debt.
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Q2: higher the firm's flotation cost for new
Q3: cost of capital used in capital budgeting
Q4: before-tax cost of debt, which is lower
Q6: cost of perpetual preferred stock is found
Q7: general, firms should use their weighted average
Q9: cost of equity raised by retaining earnings
Q10: a firm's marginal tax rate is increased,
Q11: capital budgeting and cost of capital purposes,
Q15: "Capital" is sometimes defined as funds supplied
Q33: Funds acquired by the firm through retaining
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