What impact do investors expectations about inflation have on a firms cost of debt? Is the firms

Question:

What impact do investors’ expectations about inflation have on a firm’s cost of debt? Is the firm’s affected? Explain.

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...