This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 37 times)

aeb093

  • Full Member
  • ***
  • Posts: 165
Which of the following statements is correct?

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


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.


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.


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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by aeb093 on Aug 7, 2023

fdsajkl

  • Full Member
  • ***
  • Posts: 160
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.
Answer Preview
Only 39% of students answer this correctly




aeb093

  • Member
  • Posts: 165
Reply 2 on: Aug 7, 2023
Wow, this really help


dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

For a complete list of videos, visit our video library