Multiple Choice
Which one of the following is used as the pretax cost of debt?
A) Average coupon rate on the firm's outstanding bonds
B) Coupon rate on the firm's latest bond issue
C) Weighted average yield to maturity on the firm's outstanding debt
D) Average current yield on the firm's outstanding debt
E) Annual interest divided by the market price per bond for the latest bond issue
Correct Answer:
Verified
Correct Answer:
Verified
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