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What is Corporate Finance: Risk-Return Analysis about?

The document presents two cases of corporate finance that involve the calculation of the cost of debt capital. The first case analyzes the pre-tax and post-tax costs of debt capital for a company issuing bonds. The second case calculates the after-tax cost of debt capital for a company taking out a loan, and explains how to use the interest rate and the cost of debt capital to calculate the net present value of a cash flow. Both cases include tables with detailed calculations.

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