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Memphic Memphic
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6 years ago
Which of the following statements is FALSE?
A) The tax deductibility of interest lowers the effective cost of debt financing for the firm.
B) When a firm uses debt financing, the cost of the interest it must pay is offset to some extent by the tax savings from the interest tax shield.
C) With tax-deductible interest, the effective after-tax borrowing rate is r(τC).
D) The WACC represents the cost of capital for the free cash flow generated by the firm's assets.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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6 years ago
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Memphic Author
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6 years ago
Helped a lot
big_larry_samp
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
djeghri
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2 hours ago
This site is awesome
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