When considering bond refunding, all except which of the following are important input items?
A) Interest payments of old issue
B) Weighted cost of capital
C) Interest payments of new issue
D) After-tax cost of debt

Question

Quizplus · Accepted Answer

All of the other options - interest payments of old issue, interest payments of new issue, and after-tax cost of debt - are important input items to consider when evaluating bond refunding. The weighted cost of capital, while generally important in financial decision-making, is not directly relevant to the decision of whether or not to refund bonds.

When Considering Bond Refunding, All Except Which of the Following