Reply Tue 11 Jun, 2013 07:36 am
Suppose the Relative Tax Advantage (RTA) of debt for investors is 1.5. Which of the following statements is most accurate?

The amount an investor would receive from EUR 1 EBIT used as an interest payment is 1.5 times the amount he would receive from EUR 1 EBIT used as a dividend payment
The amount an investor would receive from EUR 1 EBIT used as a dividend payment is 1.5 times the amount he would receive from EUR 1 EBIT used as an interest payment
The amount an investor would receive from EUR 1 EBIT used as a dividend payment is the same as he would receive from EUR 1 EBIT used as an interest payment
The amount an investor would receive from EUR 1 EBIT used as an interest payment is half as much as he would receive from EUR 1 EBIT used as a dividend payment
None of the above
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Lordyaswas
 
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Reply Tue 11 Jun, 2013 08:27 am
@klaraottichova,
None of the above, apart from one or more.
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