Which of the Following Would NOT Be Considered a Cost

question 14

Multiple Choice

Which of the following would NOT be considered a cost of debt financing?

• A)The required return on a bank loan
• B)The required return on preferred stock
• C)The yield-to-maturity of a bond issue
• D)The required return on money borrowed from a venture capitalist

---

Definitions:

Eruption Column

A towering cloud of ash, gas, and volcanic debris that rises above a volcano during an explosive eruption.

Caldera

A large, bowl-shaped volcanic depression, formed by the collapse of land following a volcanic eruption or the emptying of a magma chamber.

Basin-shaped Depression

A rounded or oval valley or hollow in the Earth's surface, typically formed by erosion or the collapse of a volcanic crater.

Calderas

Large, basin-like depressions formed by the collapse of a volcano after a massive eruption, usually holding a lake.