n NISM Certifications
XXI NISM Series XXI-A
Medium

The "Cost of Debt" for a company is primarily reflected in:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The interest payments on its borrowings

    Correct answer

  2. B

    The dividend payments to shareholders

  3. C

    The company's earnings per share

  4. D

    The company's cash reserves

Why this is the answer

The cost of debt is the effective interest rate paid on borrowed funds.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.