Examlex
Which of the following statements a) , b) or c) is false?
After-Tax Cost of Debt
The interest expense on debt adjusted for taxes, reflecting the actual cost to the company.
Marginal Tax Rate
The rate at which additional income is taxed, reflecting the proportion of each additional dollar of income that goes to taxes.
Weighted Average Cost of Capital
The average rate of return a company is expected to pay its security holders, weighted by the proportion of each security in the total capital structure.
Preferred Shares
Preferred shares are a type of stock that provides shareholders preferential payments of dividends and priority over common stock in asset liquidation, but generally do not carry voting rights.
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