Which of the following is NOT true regarding a ﬁrm's cost of debt?

Question

Quizplus · Accepted Answer

The statement that a firm's cost of equity is generally easier to calculate than a firm's cost of debt is not true. Calculating the cost of equity requires estimating the cost of equity capital, an often complex and subjective process that considers factors such as market risk, beta, and expected returns. In contrast, the cost of debt is typically more straightforward, as it can be calculated using the interest rate on the firm's existing debt or by estimating the rate the firm would have to pay to issue new debt.

Which of the Following Is NOT True Regarding a ﬁRm's