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Which of the Following Statements Correctly Describes How Leasing Companies

Question 101

Multiple Choice

Which of the following statements correctly describes how leasing companies' debt-dominated capital structure impact their cost of borrowing?


A) The portion of debt does not affect the cost of capital
B) Large portion of debt reduced the cost of capital
C) More information is needed to describe the impact on the cost of capital
D) Large portion of debt increases the cost of capital

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