Solved: Why is the cost of capital measured on an after-tax basis, Finance Basics

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Why is the cost of capital measured on an after-tax basis

Task: Please help answer 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: Why is the cost of capital measured on an after-tax basis

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