The Aftertax Cost of Debt Generally Increases When

Multiple Choice

The aftertax cost of debt generally increases when:
I.a firm's bond rating increases.
II.the market rate of interest increases.
III.tax rates decrease.
IV.bond prices rise.

A) I and III only
B) II and III only
C) I, II, and III only
D) II, III, and IV only
E) I, II, III, and IV