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Which of the following would be the most reasonable approach to calculating the cost of debt for a company? A: Using the yield to maturity
Which of the following would be the most reasonable approach to calculating the cost of debt for a company?
A: Using the yield to maturity on the companys existing bonds
B: Multiplying the amount of debt on the companys balance sheet by the risk-free rate
C: Using the coupon rate on the companys existing bonds
D: Using the interest amount reported on the income statement
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