Which of the Following Is Likely to Lead to an Increase

question 29

Multiple Choice

Which of the following is likely to lead to an increase in a firm's cost of debt financing?

• A)An increase in expected inflation.
• B)An increase in the riskiness of assets.
• C)An increase in the average age of debt financing.
• D)All of the above.

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Definitions:

FUTA Expense

The total cost incurred by an employer for the Federal Unemployment Tax, contributing to the U.S. government's unemployment fund.

Form 941

A federal tax form used by employers to report quarterly income taxes, social security tax, and Medicare tax withheld from employees' paychecks.

Form 940

A tax form filed by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Form W-2

An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.