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Author Question: The higher the firms tax rate, the higher its after-tax cost of debt and WACC will be, other things ... (Read 65 times)

lingual

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on: Aug 7, 2023

Question 1

The cost of new common equity or external equity is lower than the cost of equity raised internally by reinvesting earnings because of flotation costs involved in raising equity by reinvesting earnings.

◦ true
◦ false

Question 2

The higher the firm’s tax rate, the higher its after-tax cost of debt and WACC will be, other things held constant.

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

kaynelson17

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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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lingual

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

JaynaD87

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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