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A company which is forecast to experience a strong growth in its profitability is evaluating...

A company which is forecast to experience a strong growth in its profitability is evaluating a potential bond issue.

Which of the following changes in corporate income tax and in bond yields would make the bond issue more attractive to the company?

A.

A decrease in corporate tax and an increase in bond yields.

B.

An increase in corporate tax and a decrease in bond yields.

C.

An increase in corporate tax and an increase in bond yields.

D.

A decrease in corporate tax and a decrease in bond yields.

CIMA F3 Summary

  • Vendor: CIMA
  • Product: F3
  • Update on: Jul 29, 2025
  • Questions: 435
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