{"id":47177,"date":"2024-04-15T22:23:01","date_gmt":"2024-04-15T22:23:01","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=47177"},"modified":"2024-04-15T22:23:01","modified_gmt":"2024-04-15T22:23:01","slug":"cost-of-new-debt-or-marginal-debt-is-also-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/","title":{"rendered":"Cost of new debt or marginal debt is also classified as"},"content":{"rendered":"

[amp_mcq option1=”historical rate” option2=”embedded rate” option3=”marginal rate” option4=”Both A and B” correct=”option3″]<\/p>\n

The correct answer is: C. marginal rate.<\/p>\n

The marginal rate is the additional cost of borrowing one more unit of capital. It is also known as the incremental cost of capital or the marginal cost of debt. The marginal rate is important because it is the rate that should be used to discount future cash flows when making investment decisions.<\/p>\n

The historical rate is the interest rate that was paid on a loan in the past. It is not relevant to the current cost of borrowing because the interest rate environment has changed since the loan was taken out.<\/p>\n

The embedded rate is the interest rate that is built into a financial instrument, such as a bond. It is not relevant to the current cost of borrowing because it is the rate that was agreed upon when the instrument was issued.<\/p>\n

In conclusion, the marginal rate is the correct answer because it is the rate that should be used to discount future cash flows when making investment decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”historical rate” option2=”embedded rate” option3=”marginal rate” option4=”Both A and B” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-47177","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\nCost of new debt or marginal debt is also classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost of new debt or marginal debt is also classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=”historical rate” option2=”embedded rate” option3=”marginal rate” option4=”Both A and B” correct=”option3″]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:23:01+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Cost of new debt or marginal debt is also classified as","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/","og_locale":"en_US","og_type":"article","og_title":"Cost of new debt or marginal debt is also classified as","og_description":"[amp_mcq option1=”historical rate” option2=”embedded rate” option3=”marginal rate” option4=”Both A and B” correct=”option3″]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:23:01+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/","url":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/","name":"Cost of new debt or marginal debt is also classified as","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:23:01+00:00","dateModified":"2024-04-15T22:23:01+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/cost-of-new-debt-or-marginal-debt-is-also-classified-as\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Financial management","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/financial-management\/"},{"@type":"ListItem","position":3,"name":"Cost of new debt or marginal debt is also classified as"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=47177"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47177\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=47177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=47177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=47177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}