An increase in a corporation's marginal tax rate will decrease the corporation's cost of debt, but ...

Author Question: An increase in a corporation's marginal tax rate will decrease the corporation's cost of debt, but ... (Read 170 times)

dbose

Hero Member
Posts: 597

on: Jul 10, 2018

An increase in a corporation's marginal tax rate will decrease the corporation's cost of debt, but
have no impact on its cost of preferred stock or cost of common equity.

Indicate whether the statement is true or false

Question 2

The initial outlay for a new project is an example of an opportunity cost.

Indicate whether the statement is true or false

Foundations of Finance ¦ Keown, Petty, Martin ¦ 9^th Edition

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amit

Sr. Member
Posts: 364

Reply #1 on: Jul 10, 2018

Answer to Question 1

TRUE

Answer to Question 2

FALSE

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