Which of the following would NOT be considered a cost of debt financing?
A)The required return on a bank loan
B)The required return on preferred stock
C)The yield-to-maturity of a bond issue
D)The required return on money borrowed from a venture capitalist

Question

Quizplus · Accepted Answer

The required return on preferred stock is a cost of equity financing, not debt financing. A, C, and D are all costs of debt financing.

Which of the Following Would NOT Be Considered a Cost