Which of the following would be the most reasonable approach to calculating the cost of debt for

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Which of the following would be the most reasonable approach to calculating the cost of debt for a company?

a. Using the coupon rate on the company’s existing bonds

b. Using the interest amount reported on the income statement

c. Using the yield to maturity on the company’s existing bonds

d. Multiplying the amount of debt on the company’s balance sheet by the risk-free rate

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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