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Which of the Following May Be True Concerning Debt and Equity

Question 81

Multiple Choice

Which of the following may be true concerning debt and equity?


A) The cost of debt for Firm A is greater than the cost of equity for Firm A.
B) The cost of debt for Firm A is greater than the cost of equity for Firm B.
C) The cost of internally generated equity for Firm A is greater than the cost of externally generated equity funds for Firm A.
D) The cost of internally generated equity for Firm A is less than the cost of debt for Firm A.
E) None of the above could be true.

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