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    Fundamentals of Corporate Finance Study Set 14
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    Exam 13: The Cost of Capital
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    When Corporate Tax Rates Decline, the Net Cost of Debt
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When Corporate Tax Rates Decline, the Net Cost of Debt

Question 47

Question 47

Multiple Choice

When corporate tax rates decline, the net cost of debt financing ________.


A) decreases
B) is unchanged
C) increases
D) doubles

Correct Answer:

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