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In order for a firm to estimate its cost of debt capital by observing the price of its debt instruments, the firm must depend on
In order for a firm to estimate its cost of debt capital by observing the price of its debt instruments,
| the firm must depend on markets being reasonably efficient. |
| the debt must be privately held by the firm. |
| the beta of the debt must be greater than the beta of the firm's equity. |
| none of the above. |
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
