The pre-tax cost of debt for a new issue of debt is determined by - 4706

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The pre-tax cost of debt for a new issue of debt is determined by 

A) the investor's required rate of return on issued stock. 

B) the coupon rate of existing debt. 

C) the yield to maturity of outstanding bonds. 

D) all of the above. 

 

Answer: C Difficulty: Medium Type: Conceptual 

 

 

 

Chapter 14 Capital Markets

 
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