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251.

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.
Discussion
252.

Companies with higher growth pattern are likely to (a) pay lower dividends (b) pay higher dividends (c) dividends are not affected by growth considerations (d) None of the above

Answer»

(a) Companies who are having a higher growth pattern are likely to pay lower dividends.
Discussion