Benefits expected from proposed capital expenditures ________. ...

[vinney12]

Benefits expected from proposed capital expenditures ________.
 
  A) must be on a pre-tax basis because it provides the true position of profits by the firm
  B) must be on an after-tax basis because no benefits may be used until tax claims are satisfied
  C) may be valued either on pre-tax or after-tax basis based on the size of the firm
  D) are independent of interest and taxes

Question 2

A(n) ________ is issued with no or very low coupon and sells significantly below its par value.
 
  A) income bond
  B) zero or low coupon bond
  C) mortgage bond
  D) subordinated debenture

[fauacakatahaias]

Answer to Question 1

B

Answer to Question 2

B