Business, 11.03.2020 23:27 steviedude316
What two possible reasons could cause the required return to differ from the coupon interest rate? (Select the best answer below.) A. Cost of funds has changed. B. Firm's risk has changed. C. Tax rate has changed. D. Bond contract has changed.
Answers: 2
. Cost of debt is determined by tax rate and net proceeds from the issue of such bonds.
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What two possible reasons could cause the required return to differ from the coupon interest rate? (...
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