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Which one of the following best explains why R, is multiplied by {1-T) when computing...

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Which one of the following best explains why R, is multiplied by {1-T) when computing the Weighted Average Cost of Capital? Rd is generally lower than Re for a given firm interest expense on debt is a non-cash expense and must be at Axt to Me dividends on common stock are optional the tax deductibility of interest expense an debt reduces the overal cost of to account for the cost of preferred stoof 17

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