Which of the following statements is TRUE?
A) The after-tax cost of debt is less than the before-tax cost of debt for a corporation with a tax rate greater than 0.00%.
B) The after-tax cost of preferred shares is less than the before-tax cost of preferred shares for a corporation with a tax rate greater than 0.00%.
C) The after-tax cost of equity is less than the before-tax cost of equity for a corporation with a tax rate greater than 0.00%.
D) None of the above are true.
A
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When services are created or produced at the time of consumers need them, they fall under the characteristic of ____.
A. Variability B. Perishability C. Inseparability D. Intangibility
You have an absolutely brilliant child who is six years old and will be attending a private college
in twelve years. You know that in twelve years a four-year college will cost at least $70,000 per year (total $280,000), including tuition, books, and room and board. If you can earn 12 percent on a mutual fund investment during the next twelve years, how much will you have to invest at the beginning of each year to have enough to send your child to college for four years? A) $10,359.20 B) $5,022.45 C) $11,602.30 D) $4,484.33