

MCQOPTIONS
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1. |
Which one of the following represents the best estimate for a firm's pre-tax cost of debt? |
A. | the current yield-to-maturity on the firm's existing debt |
B. | the firm's historical cost of capital |
C. | twice the rate of return currently offered on risk-free securities |
D. | the current coupon on the firm's existing debt |
Answer» B. the firm's historical cost of capital | |