When evaluating debt structure, what costs should be considered?

In evaluating debt structure, it is essential to consider all relevant costs associated with the issuance and management of debt. This includes not only the interest costs but also legal and marketing expenses. Legal costs can encompass various fees related to compliance with regulations and drafting necessary documentation for the bond issuance. Marketing costs are associated with the underwriting and distribution of the bonds, ensuring that they reach potential investors efficiently.

These expenses can significantly impact the overall cost of borrowing. By including these costs in the evaluation, a comprehensive understanding of the total financial obligations associated with the debt can be achieved. Ignoring these costs could lead to an incomplete analysis, which might result in a less advantageous debt structure.

The other options either limit the scope of the evaluation to only one category of costs or dismiss the importance of considering any costs, leading to a potentially misleading view of the debt situation. Therefore, recognizing the range of expenses, as highlighted in the correct option, ensures a more accurate and effective debt management strategy.