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Explain Cognitive Dissonance Theory in Brief

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Essay

Explain cognitive dissonance theory in brief.


Definitions:

After-Tax Cost of Debt

The net cost to a company for borrowing funds after factoring in tax deductions on interest expenses.

Coupon Rate

The yearly rate of interest that the issuer of a bond pays to bondholders, typically shown as a percent of the bond's nominal value.

Tax Rate

The part of an individual's or corporation's earnings that is subject to taxation.

Debt-Equity Ratio

The ratio indicating a corporation's reliance on debt financing, found by dividing its total debts by the equity held by its shareholders.

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