The after-tax cost of debt:a. varies inversely to changes in the market interest ratesb. will generally exceed the cost of equity if the relevant tax rate is zeroc. will generally equal the cost of preferred if the tax rate is zerod. is unaffected by changes in the market rate of intereste. has a greater effect on a firm's cost of capital when the debt-equity ratio increases
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The after-tax cost of debt:a. varies inversely to changes in the market interest ratesb. will generally exceed the cost of equity if the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When implementing customer relationship management, why might a business desire fewer customers over more customers? shouldn't the focus of marketing be to acquire as many customers as possible?
Answers (1)
Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $50,000 per year and variable costs of $700 per unit.
Answers (1)
Year-to-date, Oracle had earned a - 1.53 percent return. During the same time period, Valero Energy earned 8.07 percent and McDonald's earned 0.70 percent.
Answers (1)
GDP is not a perfect measure of well-being; for example, a. GDP incorporates a large number of non-market goods and services that are of little value to society. b. GDP places too much emphasis on the value of leisure. c.
Answers (1)
On January 1, 2018, equity account balances are as follows: Preferred Stock $ 500,000 Common Stock 1,000,000 Paid-In Capital in Excess of Par - Preferred 200,000 Paid-In Capital in Excess of Par - Common 500,000 Paid-In Capital From Treasury Stock
Answers (1)
New Questions in Business
Which of the following statements is true of the market introduction stage of the product life cycle?
Answers (1)
Look at the thesaurus entry that follows this sentence. which word is the best replacement for the word "expensive"? the new insurance plan was expensive - far beyond karl's ability to pay.
Answers (1)
The best way for a franchisee and franchisor to evaluate each other is for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (2)
Suppose that the nominal rate of interest is 7% and the expected inflation rate is 3% then the real rate of interest is equal to:
Answers (1)
There are plenty of products and services on the market that customers can choose from. however, customers select the business in which they purchase products based on the perceived value of the business and product.
Answers (1)