The before-tax cost of debt for a firm, which has a marginal tax ...

[LCritchfi]

The before-tax cost of debt for a firm, which has a marginal tax rate of 40 percent, is 12 percent. The after-tax cost of debt is ________.
 
  A) 4.8 percent
  B) 6.0 percent
  C) 7.2 percent
  D) 12 percent

Question 2

The ________ measures the activity, or liquidity, of a firm's stock of goods.
 
  A) average collection period
  B) inventory turnover ratio
  C) average payment period
  D) total asset turnover ratio

[l.stuut]

Answer to Question 1

C

Answer to Question 2

B

[LCritchfi]

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