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Cost of capital measured on an after-tax basis

Please assist in answering the following question. Provide at least 200 words in the solution. Provide step by step calculations in the answer.

Question 1. Why would the cost of capital be considered an opportunity cost?

Question 2. Why is the cost of capital measured on an after-tax basis? Would this affect any specific cost components?

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Finance Basics: Cost of capital measured on an after-tax basis

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Finance Basics: Cost of capital measured on an after-tax basis

Reference No:- TGS02043003

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