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Describe Two Methods That Can Be Used to Estimate a Firm's

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Essay

Describe two methods that can be used to estimate a firm's debt cost of capital.


Definitions:

Finance Charge

The actual cost of a loan in dollars and cents.

Intrastate Commerce

Business activities that have no out-of-state connections.

Interstate Commerce

Interstate commerce refers to any trade, traffic, or transportation involving the crossing of state lines within the United States, governed by federal regulations.

Local Commerce

The exchange of goods and services within a particular geographic area, usually within the confines of a city or town.

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