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    Principles of Corporate Finance Study Set 4
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    Exam 10: Leverage and Capital Structure
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    As Financial Leverage Increases, the Cost of Debt Remains Constant
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As Financial Leverage Increases, the Cost of Debt Remains Constant

Question 163

Question 163

True/False

As financial leverage increases, the cost of debt remains constant and then rises, while the cost of equity always rises.

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