Decrease the after tax cost of debt for a firm

Assignment Help Financial Management
Reference no: EM13726435

Which one of the following will decrease the after tax cost of debt for a firm?

A. Decrease in the firm's beta

B. Increase in tax rates

C. Increase in the risk-free rate of return

D. Decrease in the market price of the debt

E. Decrease in a bond's yield to maturity

Reference no: EM13726435

Questions Cloud

Explain what type of pollution is generated by gold mining : Using the classification system presented in the chapter section "Major Areas of Environmental Regulation," explain what type(s) of pollution is (are) generated by gold mining
Using the time value of money-concepts : Assume you have the following situations. Using the time value of money (TVM) concepts (formulas or tables) calculate the correct amount in each situation.
Examine classical economic understandings of trade : Examines classical economic understandings of international trade and finance to inform decision making in the areas of business, management, policy, and participation in public debate.
The bid of vi weakly dominates any lower bid : Show that for any bidder i, the bid of vi weakly dominates any lower bid. Show further that for any bidder i, the bid of vi does not weakly dominate any higher bid. Next, show that the action profile in which each player bids her valuation is not a..
Decrease the after tax cost of debt for a firm : Which one of the following will decrease the after tax cost of debt for a firm?
Economic theory to analyze some collective decision making : Economic theory to analyze some collective decision making outcome or public policy. You can examine either the effects of this policy on the allocation of society's resources, or you can study how or why the policy came to be adopted in the firs..
Describe the geography encountered and weather conditions : tell about the food that you eat on the trail ,describe a hazardous event you encountered and describe the geography encountered and weather conditions.
The pretax cost of debt : Which one of the following is the pretax cost of debt?
The weighted average cost of capital for a risky : All else constant, the weighted average cost of capital for a risky, levered firm will decrease if:

Reviews

Write a Review

Financial Management Questions & Answers

  Calculating financial ratios

Calculating Financial Ratios

  Risk and return

Risk and Return

  Most of the worldrsquos population lives outside the united

1.most of the worldrsquos population lives outside the united states. however many u.s. companies especially small

  What is richmond corporations total net cash flow

Richmond Corporation was founded 20 years ago by its president, Daniel Richmond. The company originally began as a mail-order company but has grown rapidly in recent years, in large part due to its Web site. Because of the wide geographical dispersio..

  Why should a firm invest its idle cash

Why should a firm invest its idle cash? How to invest the idle cash and what's credit management? What's the optimal credit policy?

  How are the variances calculated above related

Calculate and interpret the volume and management variances on the cost side.

  Assume the market is in equilibrium with the required return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.75 coming 3 years from today. The div..

  Compare and contrast a defined benefit and a defined

What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Hint: Are they videos or still pictures?  Explain.

  Appropriate discount rate and corporate tax rate

Scott Investors, Inc. is considering the purchase of a $360,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method. The market value of the computer will be $60,000 in f..

  Whats the bonds current yield and capital gain yield

Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s current yield, and capital gain yield?_________

  Traditional pension plan

A recent college graduate has taken a new job at Work LLC and since the company does not offer a traditional pension plan, she plans to take advantage of a tax-free investment account backed by a reputable financial institution that offers a guarante..

  A financial planning organization

May an attorney allow a financial planning organization to refer its members to him for preparation of wills and trusts and accept payment of part or all of his fee from the organization?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd