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You are trying to estimate your firm's cost of debt financing. You call your investment banker, who tells currently cost 5.25 percent, but by the
You are trying to estimate your firm's cost of debt financing. You call your investment banker, who tells currently cost 5.25 percent, but by the time you actually arrange the financing, the cost will colleagues argue that neither of those estimates is relevant, pointing out that the firm's four months ago, shows a debt financing cost of 6.75 percent. Moreover, the most recent percent. They argue that you have to go with what the financial statements say. Which is the mo rate to use? O 5.25% O 6.90% O 6.75% O 5.50% Save for Later that under debt would est. Your
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