The specific cost of each source of long-term financing is based on_________and_________costs.
A) after-tax; historical
B) before-tax; book value
C) after-tax; current
D) before-tax; historical

Question

The specific cost of each source of long-term financing is based on_________and_________costs. 
A) after-tax; historical
B) before-tax; book value
C) after-tax; current
D) before-tax; historical

Quizplus · Accepted Answer

The cost of long-term financing should be based on after-tax and current data, as these factors reflect the most accurate and up-to-date information. Before-tax and historical data may not accurately reflect the current market conditions and tax implications.

The Specific Cost of Each Source of Long-Term Financing Is