With a Higher CCA Rate,the Present Value of Tax Savings

question 39

True/False

With a higher CCA rate,the present value of tax savings increases.

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which funds its overall operations and growth.

Total Cash Flows

The total sum of cash and cash-equivalents moving into and out of a company.

Capital Structure

The particular combination of debt and equity used by a firm to finance its overall operations and growth.

Cost of Capital

Cost of Capital is the rate of return that a company must earn on its project investments to maintain its market value and satisfy its creditors and investors.