All Else Constant, Which of the Following Will Increase the Aftertax

question 90

Multiple Choice

All else constant, which of the following will increase the aftertax cost of debt for a firm? I. increase in the yield to maturity of the firm's outstanding debt
II) decrease in the yield to maturity of the firm's outstanding debt
III) increase in the firm's tax rate
IV) decrease in the firm's tax rate

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

---

Definitions:

Substantive Dimension

Refers to the focus on the content or substance of industrial relations, including wages, working conditions, and employment terms.

Union Democracy

Union democracy refers to the practice and principle of democratic governance within labor unions, where decisions are made through the voting and participation of its members.

Union Suppression

Tactics used by employers or governments to inhibit union formation, diminish the power of existing unions, or discourage union membership and activities.

Suppression Strategy

Tactics employed by employers to inhibit or disrupt the efforts of workers to organize or unionize, often through intimidating or discouraging actions.