Correct Answer:
A. 7%
After-tax cost = 10% x (1 - 0.30) = 7%.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
The pre-tax cost of debt is 10% and the tax rate is 30%. The after-tax cost of debt is:
Related MCQs
A mixed (semi-variable) cost is a cost that:
A.
Contains both fixed and variable components
B.
Is completely fixed
C.
Is completely variable
D.
Is never related to activity
Correct answer is:
A. Contains both fixed and variable components
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Process costing is most suitable for:
A.
Continuous mass production of homogeneous products
B.
Building a bridge to a customer's design
C.
Producing a single custom machine
D.
Repair of vehicles
Correct answer is:
A. Continuous mass production of homogeneous products
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Value for money in public audit refers to:
A.
Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
B.
Spending as little as possible regardless of outcome
C.
Spending the entire budget
D.
Maximizing revenue only
Correct answer is:
A. Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
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The agency problem arises from a conflict of interest between:
A.
Customers and suppliers
B.
Managers and shareholders
C.
Auditors and tax officers
D.
Employees and customers
Correct answer is:
B. Managers and shareholders
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INTOSAI stands for:
A.
International Office of Standard Audit and Investigation
B.
International Organization of Supreme Audit Institutions
C.
International Organization of Statutory Auditors and Inspectors
D.
Institute of National Taxation and Statistics
Correct answer is:
B. International Organization of Supreme Audit Institutions
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Actual quantity used is 480 units, standard quantity allowed is 500 units and the standard price is Rs. 10. The material usage variance is:
A.
Rs. 200 adverse
B.
Rs. 200 favorable
C.
Rs. 5,000 favorable
D.
Rs. 4,800 adverse
Correct answer is:
B. Rs. 200 favorable
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