Question: D Which of the following statement is correct? O Decrease in the firm's tax rate will increase the aftertax cost of debt for a firm,

D Which of the following statement is correct? O Decrease in the firm's tax rate will increase the aftertax cost of debt for a firm, all else constant. All the answers are incorrect. O When a company issues old securities escrow costs increase the cost of raising the capital. O Preferred stock is an annuity. The weight referred to in weighted average cost of capital refers to the portion of the total capital raised by the debt only. Question 22 (TRUE or FALSE?) Payback Period shows how many years take to recoup the initial investment. TRUE 1 pts FALSE

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