If two firms have the same yield to maturity on their publicly traded debt then the firm with the ________ will have a ________ after-tax cost of debt
A) lower tax rate; higher
B) higher tax rate; higher
C) shorter maturity of debt; higher
D) longer maturity of debt; lower
A
You might also like to view...
The doctrine of sover-eign immu-nity can immunize a foreign nation from the jurisdiction of U.S. courts
Indicate whether the statement is true or false
This year, Hamilton, a local manufacturer of off-shore drilling platforms, entered into a contract to construct a drilling platform that will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Hamilton estimates the total construction cost at $3,000,000. Actual costs incurred this year are $600,000. If Hamilton uses the percentage of completion method, the gross
profit for this year is A) $0. B) $400,000. C) $600,000. D) $2,000,000.
The _____ transfers the old retail model to the e-commerce world by using the medium of the Internet
A) merchant model B) brokerage model C) advertising model D) infomediary model
Which of the following is the capital budgeting technique that has the weakest connection to the goal of value maximization?
A) internal rate of return B) payback period C) profitability index D) net present value