Question: Which one of the following will decrease the cost of debt for a firm? a. an increase in the risk level of the firm b.

Which one of the following will decrease the cost of debt for a firm?

a. an increase in the risk level of the firm

b. an increase in tax rates

c. an increase in the risk-free rate of return

d. a decrease in the bond rating of a firm

e. a decrease in the price of the firms outstanding bonds

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