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Basic Question 9 of 14
Which of the following is (are) likely to cause an increase in the after-tax cost of debt (kd(1 - T))?
II. An increase in tax rates
III. A decrease in tax rates
I. An increase in the level of interest rates
II. An increase in tax rates
III. A decrease in tax rates
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Edward Liu
Learning Outcome Statements
calculate and interpret the weighted-average cost of capital for a company
CFA® 2025 Level I Curriculum, Volume 2, Module 6.