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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))?

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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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

calculate and interpret the weighted-average cost of capital for a company

CFA® 2024 Level I Curriculum, Volume 2, Module 6.