Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

I. Pretax cost of debt is generally higher than the pretax cost of equity.
II. Interest is tax deductible.
III. Preferred dividends are tax deductible.
IV. Total cost of capital is always greater than or equal to cost of equity.

• A)II and IV
• B)II, III, and IV
• C)I, II, and IV
• D)II only

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Definitions:

User-generated Content

Content created and shared by consumers or users of a platform or service, rather than by the platform or brand itself.

Marketing Analytics

The practice of measuring, managing, and analyzing marketing performance to maximize effectiveness and optimize return on investment (ROI).

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, often identified as product, price, place, and promotion.

Global Marketing

The process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations on a global scale.