A company borrows money using corporate bonds that yield 6.5 percent. This interest rate can also...

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A company borrows money using corporate bonds that yield 6.5 percent. This interest rate can also be calle Multiple Choice o

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Answer 1

Answer #1

Cost of debt is the cost of source of finance raised through debt financing. It is adjusted for tax saving to arrive at real cost of debt.

Hence, correct option is “cost of debt”

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Answer 2

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