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An interest rate which is paid by firm as soon as...

This question belongs to Commerce Financial Management
Financial Management
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An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax

Answer & Solution
Correct Answer: Option D
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax cost of debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company's cost of debt before taking taxes into account.
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