Which of the Following Statements Is Most Correct

question 31

Multiple Choice

Which of the following statements is most correct?

• A) An increase in the corporate tax rate would lower the weighted average cost of capital for an average firm, other things held constant.
• B) Depreciation-generated funds have a cost equal to the firm's lowest WACC, and hence they have no impact on the MCC schedule.
• C) As a firm's debt ratio approaches 100 percent, the after-tax cost of debt, r_dT, at its lowest level.
• D) Statements a, b, and c are all true.
• E) Statements a, b, and c are all false.

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The action of unfairly treating a person or particular group of people differently from others.

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