A firm's cost of debt:
A) Increases as the tax rate increases.
B) Increases when the firm's bond rating increases.
C) Is equal to the coupon rate on the firm's latest bond issue.
D) Is the interest rate the firm must pay on new debt.
E) Is inversely related to market rates.
Correct Answer:
Verified
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A) Is
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A) Cannot be used
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A) Varies over time
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