The before-tax cost of debt, rd, is the same as the:?
A. average yield to maturity (YTM) associated with the firm's bonds.?
B. ?dividend yield associated with the firm's common stock.
C. ?average coupon rate of the firm's bonds.
D. ?return on equity if the firm has no preferred stock.
E. ?the firm's marginal tax rate.
Answer: A
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