Business & Finance Homework Help
Which of the following statements is false?A.The actual cash flow that
Which of the following statements is false?
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A.
The actual cash flow that
the investor will get to keep will be reduced by the amount of any tax payments.
B.
The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and term.
C.
The equivalent after – tax interest rate is r(1-tau).
D.
To compensate for the risk that they will receive less if the firm defaults, investors demand a lower interest rate than the rate on Treasury Bills of the Government of Canada.
