Other things remaining the same, an increase in the tax rate on corporate profits will (a) make debt relatively cheaper (b) make the debt relatively the dearer (c) have no impact on the cost of debt (d) we can’t say

Other things remaining the same, an increase in the tax rate on corpor

1.	Other things remaining the same, an increase in the tax rate on corporate profits will (a) make debt relatively cheaper (b) make the debt relatively the dearer (c) have no impact on the cost of debt (d) we can’t say
Answer» (a) If the tax rate on corporate profits are increased, it makes debt relatively cheaper.

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Other things remaining the same, an increase in the tax rate on corporate profits will (a) make debt relatively cheaper (b) make the debt relatively the dearer (c) have no impact on the cost of debt (d) we can’t say

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