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Author Question: An increase in a corporation's marginal tax rate will cause the corporation's after-tax cost of debt ... (Read 121 times)

bobypop

  • Hero Member
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on: Jul 10, 2018
An increase in a corporation's marginal tax rate will cause the corporation's after-tax cost of debt to
  increase, other things remaining the same.
 
  Indicate whether the statement is true or false

Question 2

Because common stock represents a residual interest in the corporation, the value of common stock
  is equal to the total firm value less the firm's outstanding debt.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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reelove4eva

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

TRUE


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