All the following variables are used in computing the cost of debt except:
A) maturity value of the debt.
B) market price of the debt.
C) number of years to maturity.
D) risk-free rate.

Question

Quizplus · Accepted Answer

The risk-free rate is not directly used in computing the cost of debt. The cost of debt typically involves the interest rate, market price, maturity value, and years to maturity.

All the Following Variables Are Used in Computing the Cost