There Are Two Costs of Debt Finance

question 80

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 overborrowing increases the required rate of return to equity.

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Life Course

A research perspective that studies individuals' lives within structural, social, and cultural contexts, focusing on changes and transitions across their lifespan.

Norms

Rules or expectations that are socially enforced, guiding behavior and actions within a society or group.

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A system of rules created and enforced through social or governmental institutions to regulate behavior, with consequences for violation.

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