Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A)A decrease in the firm's marginal corporate tax rate will decrease the weighted average cost of capital.
• B)Flotation costs can decrease the weighted average cost of capital.
• C)The cost of debt is based on the cost of all liabilities, including accounts payable and accruals.
• D)None of these statements are correct.

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Definitions:

Depreciation Tables

Charts provided by the IRS to assist taxpayers in calculating the depreciation expense of an asset for tax purposes over its useful life.

Four-Plex

A residential building divided into four separate units or apartments, each functioning as a separate dwelling.

Net Rental Income

The profit derived from renting out property after deducting all allowable expenses related to the rental activity.

Standard Mileage Rate

The Standard Mileage Rate is a set rate per mile established by the IRS that taxpayers can use to calculate deductible vehicle expenses for business, medical, moving, or charitable purposes.