In bond refunding analysis the ____ is believed to be the most appropriate discount rate.
A) after-tax cost of new debt
B) firm's marginal cost of capital
C) weighted average cost of capital
D) All of these are correct

Question

Quizplus · Accepted Answer

The most appropriate discount rate for bond refunding analysis is the after-tax cost of new debt, as it directly reflects the cost of replacing the old debt with new debt.

In Bond Refunding Analysis the ____ Is Believed to Be