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Why isn't (Ke) involved with tax

Why isn't (Ke) involved with tax

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Ke or cost of equity or cost of retained earnings is the return a firm theoretically pays to its equity investors, this is generally in form of dividends which are not tax-deductible, meaning they are taxed. Whereas the cost of debt(Kd) is involved with tax because the interest payments to the bondholders are tax-deductible.

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