Question
The aftertax cost of debt generally decreases when: I. A firm's bond rating increases. II. The market rate of interest decreases. III. Tax rates increase.
The aftertax cost of debt generally decreases when:
I. A firm's bond rating increases. II. The market rate of interest decreases. III. Tax rates increase. IV. Bond prices drop.
| A. | I and III only | |
| B. | II and III only | |
| C. | I, II, and III only | |
| D. | II, III, and IV only | |
| E. | I, II, III, and IV |
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
