The After-Tax Cost of Debt ________ the Before-Tax Cost of Debt

question 42

Multiple Choice

The after-tax cost of debt ________ the before-tax cost of debt for a firm that has a positive marginal tax rate.

• A) is always greater than
• B) is always equal to
• C) is always less than
• D) may be greater than or less than

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Definitions:

Job Enrichment

The incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job.