Question: 7. Which one of the following will decrease the aftertax cost ofdebt for a firm? A. Decrease in the firm's beta B. Increase in tax

7. Which one of the following will decrease the aftertax cost ofdebt for a firm?

A. Decrease in the firm's beta

B. Increase in tax rates

C. Increase in the risk-free rate of return

D. Decrease in the market price of the debt

E. Decrease in a bond's yield to maturity

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