A formula of after-tax component cost of debt is___________?

Related Mcqs:

1. 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...

2. 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...

3. 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...

4. 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...

5. 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...

6. 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...

7. 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...

8. 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...

9. 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...

10. 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...