Which one of the following best explains why Rp is multiplied by (1-T) when computing...
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Finance
Which one of the following best explains why Rp is multiplied by (1-T) when computing the Weighted Average Cost of Capital? interest expense on debt is a non-cash expense and must be added back to Net Income O Rd is generally lower than Re for a given firm O dividends on common stock are optional to account for the cost of preferred stock the tax deductibility of interest expense on debt reduces the overall cost of debt
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