Which one of the following components is not used when estimating the cost of risky debt capital?
A) real interest rate
B) inflation premium
C) default risk premium
D) market risk premium
E) liquidity premium
Correct Answer:
Verified
Q49: The added interest rate charged due to
Q50: Which of the following describes the interest
Q51: A venture has raised $4,000 of debt
Q52: Your venture has net income of $600,
Q53: The "risk-free" interest rate is the sum
Q55: What has been the approximate average annual
Q57: The word "risk" developed from the early
Q57: Suppose the real risk free rate of
Q58: A venture's "riskiness" in terms of possible
Q59: The additional premium added to the real
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents