The after-tax cost of debt ___ the before-tax cost of debt for a firm that has a positive marginal tax rate.A.is always greater thanB.is always equal toC.is always less thanD.may be greater than or less than的答案是什么.用刷刷题APP,拍照搜索答疑.刷刷
a17.The pre-tax cost of debt for a firm: a.is equal to the yield to maturity on the outstanding bonds of the firm. b.is equal to the coupon rate of the outstanding bonds of the firm. c.is equivalent to the current yield on the outstanding bonds of the firm. d.is based on the...
How to Calculate the Market Value of a Firm's Debt Advertisement Step 3 Solve for the pre-tax cost of debt. In our example, pre-tax cost of debt equals 15.38462 percent. Advertisement A fundamental lesson for any first-year business student is how to calculate the cost of debt. Specifical...
What is the pre-tax cost of debt? Cost of Debt: When a business takes on debt to finance their operations, they can increase their capacity much faster than they could by paying for those expansions through their retained earnings. One feature of debt is that it imposes a cost on the bu...
D、generally less than the firm's aftertax cost of debt. E、inversely related to changes in the firm's tax rate. 正确答案: C 17If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous and exclusive use of the ...
百度试题 题目The before-tax cost of DQZ’s planned debt financing, net of flotation costs, in the first year is A. 11.80% B. 8.08% C. 10.00% D. 7.92% 相关知识点: 试题来源: 解析 B 略 反馈 收藏
The unlevered cost of capital is:A.the cost of capital for a firm with no equity in its capital structure.B.the cost of capital for a firm with no debt in its capital structure.C.the interest tax shield times pretax net income.D.the cost of preferred stock for a firm with equal ...
The after-tax cost of debt is closest to:A. 7.5%.B. 5.6%.C. 5.3%. 正确答案:C 分享到: 答案解析: 7.5 × (1 − 0.3) = 5.25% 统计:共计0人答过,平均正确率0% 问题:进入高顿部落发帖帮助相似题型热门网课更多>> 论坛精华更多>> 题库APP下载更多>> 关注我们 微信号:gaoduntiku 登录...
For example, the after-tax cost of a 10% bond is 7% [10% × (1 – 30%)] if the tax rate is 30%.Answer (A) is incorrect because The after-tax cost of debt is the cost of debt times the quantity one minus the tax rate.Answer (B) is incorrect because The after-tax cost of...
Potential investors use financial analysis to rate debt. Discover what investors should know, including important financial ratios (i.e. debt-to-equity, interest coverage, and capitalization ratios), and how to put them together to make an informed decision. Related...