Why do we use market interest rate instead of historical interest rates in calculating a firm’s cost of debt? why do we prefer to use market values instead of book values ?

2. Why do we assume business and financial risk are unchanged when evaluating the cost of capital? discuss the implications of these assumptions on the acceptance and financing of new projects

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Why do we use market interest rate instead of historical interest rates in calculating a firm’s cost of debt? why do we prefer to use market values instead of book values ?

2. Why do we assume business and financial risk are unchanged when evaluating the cost of capital? discuss the implications of these assumptions on the acceptance and financing of new projects

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Your email address will not be published. Required fields are marked *