Other Things Equal, a Firm That Must Obtain Its Long-Term

question 72

Multiple Choice

Other things equal, a firm that must obtain its long-term debt and equity in a highly illiquid domestic securities market will probably have a:

• A) relatively low cost of capital.
• B) relatively high cost of capital.
• C) relatively average cost of capital.
• D) cost of capital that we cannot estimate from this question.

---

Definitions:

Subclass Constructor

A subclass constructor is a special method in object-oriented programming used to create instances of a subclass, possibly invoking a superclass's constructor as part of its process.

Clone Method

A method that creates and returns a copy of an object, often overriding the protected clone method defined in the Object class.

Return Type

The data type of the value that a method or function promises to give back after its execution.

Cloned Object

A cloned object is a duplicate of an original object, created by invoking a cloning process in programming, which copies the attributes of the original object.