The financial crisis of 2007 2009 and the ensuing attempts by the Federal Reserve to stave off a deepening recession affected the cost of capital for all firms Specifically, although very short term Treasury bill rates were driven to near zero as investors sought the relative safety of government i...

The cost of borrowing shortterm funds is lower only for f ...

The financial crisis of 2007-2009 and the ensuing attempts by the Federal Reserve to stave off a

Question:

The financial crisis of 2007-2009 and the ensuing attempts by the Federal Reserve to stave off a deepening recession affected the for all firms. Specifically, although very short-term Treasury bill rates were driven to near zero as investors sought the relative safety of government-issued securities, the spread between comparable-maturity Treasury issues and corporate issues swelled. How would you describe the impact of these events on the for the average U.S. Corporation?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...