13.) Suppose Congress increases corporate tax rates next year to 55%. The likely effect (if other factors don't change) is a decrease in the firm's cost of debt.

True

False

QUESTION 14

1. A funding component is?

A. the total funding required for a specified decision point

B. a long term source of capital

C. a collateral agreement, such as pledging an asset as security for a morgage bond

D. an ancillary requirement on a loan that affects its risk, such as a restrictive covenant