The after-tax cost of debt ______.

Group of answer choices

varies inversely to market interest rates

will generally exceed the cost of equity if the relevant tax rate is zero

is equal to the pre-tax cost of debt

is directly related to the cost of equity

has a greater effect on a firm's cost of capital when the debt-equity ratio increases

If a firm applies its overall cost of capital to all its proposed projects, then the divisions within the firm will tend to ______.

Group of answer choices

receive less funding if they represent the riskiest operations of the firm

avoid risky projects so that they will receive more funding

become less risky over time based on the projects that are accepted

have equal probabilities of receiving funding for their projects

propose higher risk projects than if separate discount rates were applied to each project

When do ranking conflicts arise in IRR versus NPV?

Group of answer choices

When the first cash flow is negative and the remaining cash flows are positive.

When projects are independent of one another.

When projects are mutually exclusive and the cost of capital is to the left of the crossover point.

All of the above can result in conflicts.