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CTP · Question #659
(Topic 7) The following information about a company is at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The…
The correct answer is D. 1.37. See the full explanation below for the reasoning.
Question
- (Topic 7)
The following information about a company is at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's current ratio is:
Options
- A0.46.
- B0.59.
- C0.93.
- D1.37.
How the community answered
(28 responses)- A4% (1)
- B14% (4)
- C4% (1)
- D79% (22)
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