cost of capital

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April 14, 2015 at 8:23 am #241246
chiefbala1
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What cost of capital is generally used in evaluating a bond refunding decision? Why?
April 14, 2015 at 10:05 am #241264
John Moffat
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The exam has never ever used the expression ‘bond refunding’.

If you are asking about the raising of finance in order to repay borrowing, then it is a question of considering the cost of each of the alternatives available.
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