Which of the following would likely decrease the cost of debt for a company?A) An increase in the company's credit ratingB) A decrease in the company's profitabilityC) A rise in interest rates across the marketD) An increase in the company's dividend payouts

Which of the following would likely decrease the cost of debt for a company?A) An increase in the company's credit ratingB) A decrease in the company's profitabilityC) A rise in interest rates across the marketD) An increase in the company's dividend payouts

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 11MC

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Question

Which of the following would likely decrease the cost of debt for a company?
A) An increase in the company's credit rating
B) A decrease in the company's profitability
C) A rise in interest rates across the market
D) An increase in the company's dividend payouts

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