Question 33 2 pts Which is more relevant, the pretax or the after tax cost of debt Why The pretax cost of debt is more relevant, because it is the cost that is most easily calculated m The after tax cost of debt is more relevant, because it is the actual cost of debt to the company The pretax cost of debt is equal to the after tax cost of debt, so it makes no difference None of the above Question 34 2 pts The cost of capital Depends primarily on the source of the funds, rather than the use Is the total risk of the firm's equity Depends primarily on the use of the funds, not the source The interest rate on the firm's outstanding long term bonds Question 35 2 pts The cost of debt for a firm Can be observed directly even if the firm's bonds are not publicly traded Is calculated by estimating the change in the firm's equity and then using the SML Is estimated by finding the yield on previously issued bonds with lower bond ratings Is calculated by looking at the coupon rates on existing bonds of similar risk Is the return that lenders require on the firm's debt

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Question 33 2 pts Which is more relevant, the pretax or the after tax cost of debt  Why  The pretax cost of debt is more relevant, because it is the cost that is most easily calculated  m The after tax cost of debt is more relevant, because it is the actual cost of debt to the company  The pretax cost of debt is equal to the after tax cost of debt, so it makes no difference  None of the above  Question 34 2 pts The cost of capital Depends primarily on the source of the funds, rather than the use  Is the total risk of the firm's equity  Depends primarily on the use of the funds, not the source  The interest rate on the firm's outstanding long term bonds  Question 35 2 pts The cost of debt for a firm  Can be observed directly even if the firm's bonds are not publicly traded  Is calculated by estimating the change in the firm's equity and then using the SML  Is estimated by finding the yield on previously issued bonds with lower bond ratings  Is calculated by looking at the coupon rates on existing bonds of similar risk  Is the return that lenders require on the firm's debt

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Question 33 2 pts Which is more relevant, the pretax or the after-tax cost of debt? Why? The pretax cost of debt is more relevant,

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