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Lester Lent Money to the Corner Store by Purchasing Bonds

Question 20

Multiple Choice

Lester lent money to The Corner Store by purchasing bonds issued by the store.The rate of return that he and the other lenders require is referred to as the:


A) pure play cost.
B) cost of debt.
C) weighted average cost of capital.
D) subjective cost.
E) cost of equity.

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