A formula of after-tax component cost of debt is Options: A . &nbspinterest rate-tax savings B . &nbspmarginal tax-required return C . &nbspinterest rate + tax savings D . &nbspborrowing cost + embedded cost

A formula of after-tax component cost of debt is

Question

A formula of after-tax component cost of debt is

Options:

A . interest rate-tax savings

B . marginal tax-required return

C . interest rate + tax savings

D . borrowing cost + embedded cost

Answer: Option A
Answer: (a).interest rate-tax savings

Was this answer helpful ?

Next Question

Question 1. The risk free rate is subtracted from expected market return is considered as....

Question 2. The type of variability in which a project contributes in the return of company is considered as....

Question 3. The rate of required return by debt holders is used for the estimation of....

Question 4. The variability for the expected returns for projects is classified as....

Question 5. The cost of common stock is 16% and the bond yield is 9% then the bond risk premium would be....

Question 6. The interest rate is 12% and the tax savings (1-0.40) then the after-tax component cost of debt will be....

Question 7. The cost of capital is equal to required return rate on equity in the case if investors are only....

Question 8. If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be....

Question 9. The retention ratio is 0.60 and the return on equity is 15.5% then the growth retention model would be....

Question 10. An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0