62 A firm's cost of debt often differs from the yield reported on its bonds because Select one I out of question O a. th

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62 A Firm S Cost Of Debt Often Differs From The Yield Reported On Its Bonds Because Select One I Out Of Question O A Th 1 (42.28 KiB) Viewed 26 times

62 A firm's cost of debt often differs from the yield reported on its bonds because Select one I out of question O a. the interest paid on corporate bonds is tax deductible Ob speculators can drive the cost of debt down so that bond yields exceed it o the underwriting costs for new bond issues are not tax deductible, raising the cost of debt relative to bond yields Od the firm's cost of debt is unknown when the bonds are first sold Oe the cost of debt changes infrequently since band rating agencies do not change their recommendations often Son 63 yet wered Suppose that you hold a two-asset portfolio consisting of 100 shares of Clooney Brothers at $33 per share and too shares of Marx Brothers at 342 per share. Assume that you have computed the expected return on Clooney Brothers and Marx Brothers to be 20% and 12%, respectively. What is the expected return from the portfolio? ed out of Tag question Select one a 20% O b. 15.5% 1296 O d. 13.5 O e 16%