The present value relationship to interest is best described

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Reference no: EM131354301

1. For a firm paying 10 percent for new debt, the higher the firm's tax rate:

a) the higher the aftertax cost of debt

b) the lower of the aftertax cost of debt

c) after tax cost is unchanged

d) not enough information to judge

2. With respect to the time value of money, the present value relationship to interest is best described as:

a) no relationship

b) only present value is related to a discount rate

c) it is directly related to interest

d) it is inversely related

Reference no: EM131354301

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