The APV Method Includes All Equity NPV of a Project

question 58

Multiple Choice

The APV method includes all equity NPV of a project and the NPV of financing effects. The financing effects are:

• A) Tax subsidy of dividends, cost of issuing new securities, subsidy of financial distress and cost of debt financing
• B) Cost of issuing new securities, cost of financial distress, tax subsidy of debt and other subsidies
• C) Cost of issuing new securities, cost of financial distress, tax subsidy of dividends and cost of debt financing
• D) Subsidy of financial distress, tax subsidy of debt, cost of other debt financing and cost of issuing new securities