A Firm Has a Pre-Tax Cost of Debt of 8

question 35

Multiple Choice

A firm has a pre-tax cost of debt of 8.5%. If the firm has a marginal tax rate of 30%, what is its effective cost of debt?

• A)3.4%
• B)8.1%
• C)6.0%
• D)8.5%

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Definitions:

Biological Parents

The parents who have contributed their genetic material to the birth of a child, also known as birth parents.

Individual Differences

Differences in characteristics, influences, or developmental outcomes.

Individual Differences

Variations or distinctiveness among individuals in regard to psychological traits, behaviors, and physical attributes.

Intelligence

The capacity to acquire knowledge, comprehend, and form judgments or opinions guided by logical thinking.