Question
The cost of debt is defined as the: a. annual interest divided by the current price b. pre-tax change in the face value of a
The cost of debt is defined as the:
| a. | annual interest divided by the current price | |
| b. | pre-tax change in the face value of a bond over time | |
| c. | aftertax change in the face value of a bond over time | |
| d. | capital gain less the interest income | |
| e. | return that lenders require on any new borrowing by the firm |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
