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Which TWO of the following statements about debt instruments are correct?
Suggested Answer: A, B
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12 comments · newest first
JA
Jani
12 months ago
A zero coupon doesn't eliminate the tax shield, just changes it.
LE
Leonor
12 months ago
Changes in tax rates won't affect fixed rate debentures, that's a fact!
WH
Whitley
1 year ago
Wait, if tax rates rise, how does that reduce the tax shield? Sounds off.
SH
Shay
1 year ago
I disagree, tax shields can still apply to zero coupons.
LI
Lilli
1 year ago
The post-tax cost of debt is definitely the true cost!
NA
Natalya
1 year ago
I thought if corporation tax rates rise, the tax shield would actually increase, not reduce, so I'm a bit confused about that statement.
AV
Avery
1 year ago
The post-tax cost of debt seems right to me as the true cost, but I can't recall if it applies to all debt instruments equally.
AL
Alison
1 year ago
I think changes in corporation tax rates do affect the tax shield, especially for fixed rate debentures, but I need to double-check that.
NO
Novella
1 year ago
I remember discussing how zero coupon bonds work, but I'm not sure if they really eliminate the tax shield effect.
LA
Lashaunda
1 year ago
I'm pretty confident that the answer is D. Master-detail relationships allow for the parent record to be deleted and have all child records deleted as well, which is exactly what the question is asking for.
AL
Altha
1 year ago
I'm pretty sure Firewall as a Service (FWaaS) is one of the Prisma Access security services, so I'll go with option B.
RO
Roosevelt
1 year ago
Alright, I got this. The key is to generate a new SSH key pair and add the private key to the instance. Option C is the way to go.