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- Quiz Question 1 of 3
Which of the following is the best representation of Cost of Debt?ExplanationExplanationChoose the best answer below:
- Quiz Question 2 of 3
Company A and Company B have the exact same amount of debt outstanding, the exact same interest rate and the exact same interest expense amount. But Company A has a Marginal Tax Rate of 25% while Company B has a Marginal Tax Rate of 40%. Which Company has a greater Tax Shield?ExplanationExplanationChoose the best answer below:
- Quiz Question 3 of 3
A company takes on $300 million of debt on January 1st 2020 at 10% interest rate. It has a Marginal Tax Rate of 20%. What is the impact on 2020 Net Income?ExplanationExplanationChoose the best answer below: