APU FINC600 Week 6 Quiz 2016
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APU FINC600 Week 6 Quiz 2016 APU FINC600 Week 6 Quiz 20 1
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Question 1 of 15 1.0/ 1.0 Points
The main advantage of debt financing for a firm is:
I) no SEC registration is required for bond issue
II) interest expense of a firm is tax deductible
III) unlevered firms have higher value than levered firms
A.I only
B.II only
C.III only
D.I and III only
Question 2 of 15 1.0/ 1.0 Points
If a firm permanently borrows $100 million at an interest rate of 8%, what is the present value of the interest tax shield? (Assume that the tax rate is 30%)
A.$8.00 million
B.$5...
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APU FINC600 Week 6 Quiz 2016•APU FINC600 Week 6 Quiz 2016
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Question 1 of 15 1.0/ 1.0 Points
The main advantage of debt financing for a firm is:
I) no SEC registration is required for bond issue
II) interest expense of a firm is tax deductible
III) unlevered firms have higher value than levered firms
A.I only
B.II only
C.III only
D.I and III only
Question 2 of 15 1.0/ 1.0 Points
If a firm permanently borrows $100 million at an interest rate of 8%, what is the present value of the interest tax shield? (Assume that the tax rate is 30%)
A.$8.00 million
B.$5...