Which Three of the Following Factors Have the Greatest Effects

question 11

Multiple Choice

Which three of the following factors have the greatest effects on the cost of debt?

• A) The benefit derived from interest being tax deductible
• B) The prevailing interest rates
• C) The proportion of earnings that are retained
• D) The risk of default (and expected rate of recovery of money lent in the event of default)

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Definitions:

Fatal Crash Rates

The frequency at which accidents involving motor vehicles lead to death, often measured per population or per distance traveled.

Per Mile

A measurement unit used to express rates or amounts per mile, often applied in contexts such as fuel efficiency, transportation costs, or statistical analysis.

Comprehend

To grasp or understand the meaning of something through reading, listening, or observing.

Speech

The verbal expression of or the ability to express thoughts and feelings by articulate sounds.