A firm's cost of debt is the rate of interest it would have to pay to refinance its existing debt.

Name: A firm's cost of debt is the rate of interest it would have to pay to refinance its existing debt.
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Question

Quizplus · Accepted Answer

A firm's cost of debt refers to the interest rate it would have to pay to borrow money, either by issuing new debt or by refinancing existing debt. Therefore, the statement is true.

A Firm's Cost of Debt Is the Rate of Interest