Problem:
The aftertax cost of which of the following is affected by a change in a firm's tax rate?
I. Preferred stock
II. Debt
III. Equity
IV. Capital
Select one:
a. I and III only
b. II and IV only
c. I, II, and IV only
d. II, III, and IV only
e. I, II, III, and IV
Note: Please solve the given numerical and provide appropriate solution.