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A company's cost of debt capital: Multiple Choice Can be observed directly even if the firm's bonds are not publicly traded. Can be calculated by
A company's cost of debt capital:
Multiple Choice
- Can be observed directly even if the firm's bonds are not publicly traded.
- Can be calculated by looking at the coupon rates on existing bonds of similar risk.
- Can be calculated by estimating the beta of the firm's equity and then using the SML.
- Is the return that the firm's creditors demand for new borrowings.
- Can be estimated by finding the yield on recently-issued bonds with lower bond ratings.
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