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Question: Assume that the risk-free rate increases, but the market risk premium remains constant. What impact would this have on the overall cost of debt? Be sure to support your response.

Let's pretend that you own a portfolio consisting of $250,000 of long-term US government bonds. Is your portfolio considered riskless? If not, what sort of risks do you see?

All companies have a cost of capital and you do as well on a personal level. From a personal perspective, what do you believe is an acceptable cost of capital? How are you basing answer or what are you measuring it against?

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Category:- Basic Finance
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