QUESTION 24

1. The MCC schedule is made up of the differing levels of _______ as the total funding increases.

   		equity
   		tax rates
   		debt
   		WACC

2 points

QUESTION 25

1. Which of the following is a reason that K_D is substantially less than K_E?

   		debt has a contract, reducing creditors' risk exposure
   		interest expense is tax deductible
   		debt often has a secondary repayment source, such as seizure of collateral
   		all of these