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Questions
BUSFIN 3220 AU2025 (2910) Exam 3 - Requires Respondus LockDown Browser
Single choice
Wright Market Research is able to borrow money at a rate of 6.8 percent per year. This interest rate is called the:
Options
A.cost of debt.
B.capital gains yield.
C.compound rate.
D.current yield.
E.cost of capital.
View Explanation
Standard Answer
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Approach Analysis
The question asks to identify what the 6.8 percent per year rate Wright Market Research can borrow money at.
Option 1: cost of debt. This term refers to the effective rate a firm pays on its borrowings, i.e., the interest rate on its debt. Since the given rate is the rate charged by lenders to finance the company’......Login to view full explanationLog in for full answers
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