Explain why the investor’s required return on debt is not equal to the corporation’s cost of debt, and explain why the investor’s required return on equity is not equal to the corporation’s cost of equity.

BAM-313 Dom essay #4

Not Applicable Marginal Good

1. On each page: Student Name, ID Number, Course Number, Course Title, and Unit Number.

2. Responses typed, using a standard font, 12-point type size, double-spaced, with overall neatness and readability.

3. Restatement of the question and question number (exactly as stated in the Study Guide).

Writing Assignment Evaluation

Not Accepted Poor Marginal Good Very Good

1. Student used standard essay format: Introduction/Body/Conclusion.

2. Student demonstrated proper use of grammar, spelling, punctuation, citation style, etc.

3. Student demonstrated an understanding of course content and key concepts, as discussed in the text.

4. Student was able to examine, assess, evaluate, and/or analyze course content and key concepts.

5. Student provided a clear and well-developed response to the question.

Answer the following question: Explain why the investor’s required return on debt is not equal to the corporation’s cost of debt, and explain why the investor’s required return on equity is not equal to the corporation’s cost of equity.