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The central purpose(s) of the behavioral approach is
After-Tax Cost of Debt
This refers to the net cost of debt considering the effect of taxes, representing the actual financial cost of debt to a company after tax deductions.
Yield-to-Maturity
The total anticipated return on a bond if held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.
Marginal Tax Rate
The rate at which the next dollar of taxable income will be taxed.
WACC
Weighted Average Cost of Capital; a calculation of a company's capital cost that weighs each category of capital proportionately.
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