Which of the following statements is incorrect?
A) The cost of debt changes when market yields change.
B) The cost of debt should only be adjusted when the firm sells new bonds.
C) The cost of debt should always incorporate the net proceeds from bond sales.
D) The cost of debt reflects the borrowing costs at current market interest rates.
E) The cost of debt should include any broker's fees incurred when selling new bonds.
Correct Answer:
Verified
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