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NEW QUESTION: 1
An increase in the tax rate ________ the optimal debt-to-equity ratio. It ________ the after-tax cost of debt.
Assume all else equal.
A. this answer cannot be generated because "tax" is not a factor in the optimal debt-to-equity ratio
B. decreases; decreases
C. decreases; increases
D. increases; decreases
E. increases; increases
F. this answer cannot be generated because "tax" is not a factor in after-tax cost of debt
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Since interest payments are tax deductible, higher tax rates make debt more attractive relative to equity, increasing the optimal D/E ratio. The after-tax cost of debt decrease, assuming that the pre-tax cost of debt is not affected by the change in the tax rate (in reality, it could increase due to decreased profitability of the firm and the resultant decrease in its solvency).

NEW QUESTION: 2
Deduplication can improve performance by reducing the amount of data sent over the network and stored in storage pools. Which device class must be used to store deduplicated data?
A. DISK
B. SERVER
C. FILE
D. REMOVABLEFILE
Answer: C

NEW QUESTION: 3
Which of the following is a document that covers the work that will be done, how the work will be compensated, and any penalties for noncompliance?
A. Contract
B. Control chart
C. Project description
D. Cost baseline
Answer: A

NEW QUESTION: 4

A. Option A
B. Option C
C. Option D
D. Option F
E. Option B
F. Option E
Answer: D,E