Which of the Following Best Defines the Term Cost of Debt

question 284

Multiple Choice

Which of the following best defines the term cost of debt?

• A) The return that lenders require on the firm's debt.
• B) The return that equity investors require on their investment in the firm.
• C) The costs associated with the issuance of new securities.
• D) Retained earnings divided by net income.
• E) Performance measure based on WACC.

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