The Cost of Debt, Rd, Is Always Less Than Rs

question 21

True/False

The cost of debt, rd, is always less than rs, so rd(1 - T) will certainly be less than rs. Therefore, as long as the firm is not completely debt financed, the weighted average cost of capital will always be greater than rd(1 - T).

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A system used by Federal statistical agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data.

Six-Digit Code

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Standard Occupational Classification System

A federal statistical standard used in the United States to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data.

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