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What is a hypothesis?
After-Tax Cost Of Debt
The net cost to a company for borrowing funds, calculated by subtracting the tax savings from the cost of debt's interest payments.
Corporate Tax Rate
The tax imposed on the net income of a corporation, with the rate varying by country and sometimes also by the level of income earned.
Capital Component
One of the elements of a company's capital structure, such as equity or debt, which represents sources of financing.
Underlying Security
A stock, bond, commodity, or other asset upon which options and other derivatives are based or derived.
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