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  3. Study Set
    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
  5. Question
    The Cost of Equity Is Greater Than the Cost of Debt
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The Cost of Equity Is Greater Than the Cost of Debt

Question 157

Question 157

True/False

The cost of equity is greater than the cost of debt and increases with increasing financial leverage, but generally less rapidly than the cost of debt.

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