Scan QR code or get instant email to install app
Question:
Which of the following is least likely an issue in estimating a company’s cost of debt?
A
Companies in different jurisdictions may face different tax rates.
explanation
Different tax rates across companies do not create problems in estimating the cost of debt. Once the before‐tax cost of debt has been determined, it is adjusted for the company’s tax rate to determine the after‐tax cost of debt.
Take more free practice tests for other PASSEMALL topics with our cfa sample questions now!
Related Information
Comments