Does the tax rate, cost of debt, or cost of equity have

Reference no: EM133432497

Question: The board chair is concerned about factors that affect the CCC for any business: the level of interest rates, tax rates, capital structure policy, and capital investment policy. a. In one graph, show the CCC at +/- 5% and 10% values of the tax rate, cost of debt, and cost of equity (e.g., the CCC at a tax rate at 27.0%, 28.5%, 30.0%, 31.5%, and 33.0%.) The horizontal axis is the percent change from base case, and the vertical axis is the CCC. b. Does the tax rate, cost of debt, or cost of equity have the most influence on the CCC of Southeastern? Why?

Reference no: EM133432497

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