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In general the after-tax cost of debt rises when a company's bond rate increases and tax rates decline

Finance

In general the after-tax cost of debt rises when a company's bond rate increases and tax rates decline. (2 Points) 
0 False 
0 True 
 

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Answer

So, Above statement that "In general the after tax cost of debt rises when a company's bond rate increases and tax rates decline" is true.

Explanation

As we know,

After Tax cost of Debt = Cost of Debt*(1- Tax Rate)

So, After Tax cost of Debt can rise when company's cost of debt increases or if tax rate declines.