All else constant which of the following will increase the


All else constant, which of the following will increase the aftertax cost of debt for a firm?

I. increase in the yield to maturity of the firm's outstanding debt

II. decrease in the yield to maturity of the firm's outstanding debt

III. increase in the firm's tax rate

IV. decrease in the firm's tax rate

A. I only

B. I and III only

C. I and IV only

D. II and III only

E. II and IV only

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Financial Management: All else constant which of the following will increase the
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