It is not possible for a firm's use of debt to increase but its after-tax cost of debt to decline.

Name: It is not possible for a firm's use of debt to increase but its after-tax cost of debt to decline.
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Question

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It is possible for a firm's after-tax cost of debt to decline if its use of debt becomes more efficient or if it improves its creditworthiness, which would allow it to borrow at a lower interest rate.

It Is Not Possible for a Firm's Use of Debt