If a Firm Does Not Have Publicly Traded Debt and Therefore

question 25

Multiple Choice

If a firm does not have publicly traded debt and therefore does not have a yield to maturity as an estimate for its cost of debt,a common practice is to estimate the cost of debt by adding a premium to the rate on:

• A)the cost of accounts payable.
• B)equity.
• C)long-term government bonds.
• D)collateralized debt obligations.

---

Definitions:

Instant Messaging

A type of online communication service that enables real-time text transmission over the internet.

Communicate

The act of sharing or exchanging information, thoughts, or messages through speech, writing, signals, or other methods.

CGI Script

A program designed to be run on a web server in order to produce dynamic web pages.

Applet

A small application located on a server; when requested, the applet is downloaded to the client.