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    Financial Accounting Study Set 22
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    Exam 13: Financial Statement Analysis
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    The Cost of Capital for a Start-Up Company
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The Cost of Capital for a Start-Up Company

Question 39

Question 39

Multiple Choice

The cost of capital for a start-up company:


A) is lower because the new company is untested.
B) depends only on the market rate of interest.
C) depends only on the state of the economy.
D) is higher for the new company because it is more risky than an established company.

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