1055. Rate of required return by debt holders is used for estimation the

cost of debt
cost of equity
cost of internal capital
cost of reserve assets
✅ The correct answer is A.
Rate of required return by debt holders is used for estimation the cost of debt. Cost of debt refers to the effective rate a company pays on its current debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company’s cost of debt before taking taxes into account.

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