- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 1. The Cost of Capital
CFA Practice Question
In order to calculate the tax shield effect of interest payments, always use the ______ tax rate.
B. marginal
C. state-mandated
A. average
B. marginal
C. state-mandated
Correct Answer: B
User Contributed Comments 1
| User | Comment |
|---|---|
| StanleyMo | http://en.wikipedia.org/wiki/Tax_rate talking different kinds of tax. |