Two parts to computing the component cost of debt

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1. There are two parts to computing the component cost of debt A. because of the flotation costs. B. to enable the computation of both NPV and IRR. C. because of the tax deductibility of debt for firms. D. to account for the tax deductibility of dividends.

2. The fact that, in real life, investors don't have identical desires about the taxability and timing of firm payments is known as the A. information effect. B. clientele effect. C. bird-in-the-hand theory. D. dividend irrelevance theorem.

Reference no: EM131583267

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