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The aftertax cost of debt: Multiple Choice varies inversely to changes in market interest rates. will generally exceed the cost of equity if the relevant
The aftertax cost of debt: Multiple Choice varies inversely to changes in market interest rates. will generally exceed the cost of equity if the relevant tax rate is zero. will generally equal the cost of preferred if the tax rate is zero. O is unaffected by changes in the market rate of interest. O is highly dependent upon a company's tax rate. Financial risk is: Multiple Choice the risk inherent in a company's operations. a type of unsystematic risk. inversely related to the cost of equity. dependent upon a company's capital structure. irrelevant to the value of a company. The aftertax cost of debt: Multiple Choice varies inversely to changes in market interest rates. will generally exceed the cost of equity if the relevant tax rate is zero. will generally equal the cost of preferred if the tax rate is zero. O is unaffected by changes in the market rate of interest. O is highly dependent upon a company's tax rate. Financial risk is: Multiple Choice the risk inherent in a company's operations. a type of unsystematic risk. inversely related to the cost of equity. dependent upon a company's capital structure. irrelevant to the value of a company
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