Question: 40. Which method is preferable in order to determine the cost of debt for the Weighted Average Cost of Capital (WACC) calculation if the target

40. Which method is preferable in order to determine the cost

40. Which method is preferable in order to determine the cost of debt for the Weighted Average Cost of Capital (WACC) calculation if the target company's debt is not traded? (2 points) Historical average interest expense Spread between CAPM and the risk-free rate Calculate by determining the implied credit rating and yield, based upon the target capital structure None of the above methods are acceptable a. b. c. d

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