Answers13 - c 1 a b c d e 2 a b c d e The return that...

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c 1. The return that lenders require on their loaned funds to the firm is called the: a. coupon rate. b. current yield. c. cost of debt. d. capital gains yield. e. cost of capital. e 2. The weighted average of the firm’s costs of equity, preferred stock, and aftertax debt is the: d 3. The after-tax cost of debt generally increases when: I. a firm’s bond rating increases. II. the market rate of interest increases. III. tax rates decrease. IV. bond prices decline. a 4. The cost of preferred stock: c
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