Question
A company has financed an investment entirely by issuing a bond. Then, which component of the bond represents the cost of capital for the firm?
A company has financed an investment entirely by issuing a bond. Then, which component of the bond represents the cost of capital for the firm?
YTM | ||
Dividend Rate | ||
Sunk Costs | ||
None |
Which of the following is a non-systematic risk?
Inflation risk | ||
Risk of unexpected strike by the employees of a company. | ||
Interest rate risk | ||
All |
Flotation Cost is the cost of selling a security and therefore it needs to be taken into account in the cost of capital calculations.
True
False
The amount owed to suppliers also falls under the umbrella of equity financing.
True
False
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