A. Interest rate-tax savings
B. Marginal tax-required return
C. Interest rate + tax savings
D. Borrowing cost + embedded cost
Related Mcqs:
- The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?
A. 0.0613
B. 0.0713
C. 0.08125
D. 0.0913 - The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?
A. 0.0725
B. 0.08246
C. 0.1025
D. 0.0925 - The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
A. 0.0744
B. 0.0844
C. 0.0944
D. 0.1044 - During planning period, a marginal cost for raising a new debt is classified as__________?
A. Debt cost
B. Relevant cost
C. Borrowing cost
D. Embedded cost - Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital - An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt - Rate of required return by debt holders is used for estimation the__________?
A. Cost of debt
B. Cost of equity
C. Cost of internal capital
D. Cost of reserve assets - Markets which deals with high liquid and short-term debt securities are classified as_____________?
A. Capital markets
B. Money markets
C. Liquid markets
D. Short-term markets - A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
A. Hybrid stock
B. Common liabilities
C. Debt liabilities
D. Preferred stock - In situation of bankruptcy, stock which is recorded above common stock and below debt account is_____________?
A. Debt liabilities
B. Preferred stock
C. Hybrid stock
D. Common liabilities
