Ch5 Bonds Flashcards
1
Q
A bond holder’s return is a cost from ___.
A
the company’s point of view.
2
Q
the cost of debt affects WACC which in turn affects ___
A
the company’s intrinsic value
3
Q
WACC
A
weighted average cost of capital
4
Q
WAAC is fed by ___ and ___.
A
cost of debt
cost of equity
5
Q
WACC is weighted by ___
A
the firm’s debt equity mix
