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  3. Study Set
    Foundations of Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    The Cost of Debt Capital Is Obtained by Substituting the Net
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The Cost of Debt Capital Is Obtained by Substituting the Net

Question 89

Question 89

True/False

The cost of debt capital is obtained by substituting the net proceeds per bond for the bond price in the bond valuation equation and solving for the required return.

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