Author Question: The cost to a firm of each type of capital is dependent upon ________. A) the risk-free rate of ... (Read 80 times)

segrsyd

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The cost to a firm of each type of capital is dependent upon ________.
 
  A) the risk-free rate of bonds plus the business risk of the firm
  B) the risk-free rate of each type of capital plus the business risk of the firm
  C) the risk-free rate of each type of capital plus the financial risk of the firm
  D) the risk-free rate of each type of capital plus the business risk and the financial risk of the firm

Question 2

In a bond indenture, the term security interest refers to collateral pledged against the bond.
 
  Indicate whether the statement is true or false



Chelseyj.hasty

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Answer to Question 1

D

Answer to Question 2

TRUE



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