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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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