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It is suggested that you use the yield on a Florida State bond to estimate the State of Florida's cost of capital. Why might this
It is suggested that you use the yield on a Florida State bond to estimate the State of Florida's cost of capital. Why might this estimate overstate the actual cost of capital? (Select the best answer below.) O A. If there is some chance the State of Florida might default, then the yield on the bond exceeds its expected return. The expected return would be a more appropriate estimate for the cost of capital. B. If there is some chance the State of Florida might default, then the expected return exceeds its yield on the bond. The yield on the bond would be a more appropriate estimate for the cost of capital. C. If there is some chance the State of Florida might default, then the yield on the bond exceeds its expected return. The expected return would be a more appropriate estimate for the yield on the bond. D. If there is some chance the State of Florida might default, then the yield on the bond falls short of its expected return. The expected return would be a more appropriate estimate for the cost of capital
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