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Author Question: Which of the following statements is correct? (Read 38 times)

aeb093

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on: Aug 7, 2023
Which of the following statements is correct?

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A decrease in the flotation cost required to sell a new issue of stock will decrease the cost of retained earnings.


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If a firm has been suffering accounting losses that are expected to continue into the foreseeable future, and therefore its tax rate is zero, then it is possible for the after-tax cost of preferred stock to be less than the after-tax cost of debt.


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Since its shareholders are not directly responsible for paying a corporation's income taxes, corporations should focus on before-tax cash flows when calculating the WACC.


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A decrease in a firm’s tax rate will decrease the component cost of debt, provided the YTM on the firm’s bonds is not affected.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by aeb093 on Aug 7, 2023

fdsajkl

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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aeb093

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

komodo7

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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