The Capital structure of a firm includes bonds with a coupon rate of 12% and an effective interest rate of 14%. The corporate tax is 30%. What is the firm’s net cost of debt? A.9.8%
B.8.4%
C.14%
D.12%

As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage