There Are Two Costs of Debt Finance

question 63

True/False

There are two costs of debt finance.The explicit cost of debt is the rate of interest that bondholders demand.But there is also an implicit cost,because higher levels of debt increase the required rate of return to equity.

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Definitions:

Leadership as a Responsibility

The concept that leadership involves not just authority and decision-making but also accountability, ethical conduct, and a commitment to acting in the best interests of the group or organization.

Directive Behaviours

Actions of a leader that provide clear instructions, expectations, and guidance to their subordinates.

Assertive

Characterized by confident and forceful behavior, enabling individuals to express their thoughts, beliefs, and feelings in an honest and direct manner.

Democratic Behaviours

Actions that promote participation, equality, and fair treatment within groups or societies.