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How do tax considerations affect the cost of debt and the

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Reference no: EM13505559

1.How do tax considerations affect the cost of debt and the cost of equity?

2.If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero?  Explain your answer

3.What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions?

4.What is a marginal cost of capital schedule (MCC)?  Is the schedule always a horizontal line?  Explain

5.For a given IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject?

Reference no: EM13505559

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