Financial Management

1:

The relationship between the financial leverage and firm's required rate of return to equity shareholders with corporate taxes is given by the

A.

YE = Cost/Sales

B.

YE = r0 + D/E (1 - TC)(r0 - rB)

C.

YE = Equity/Cost

D.

YE = Sales/Income

 

Answer : B

Explanation :

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Option: A

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