Other things remaining the same, an increase in the tax rate on corporate profits will:
A. make the debt relatively cheaper
B. make the debt relatively the dearer
C. have no impact on the cost of debt
D. we can’t say
Answer:A
Other things remaining the same, an increase in the tax rate on corporate profits will:
A. make the debt relatively cheaper B. make the debt relatively the dearer C. have no impact on the cost of debt D. we can’t say