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    Practical Financial Management Study Set 1
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    Exam 13: Cost of Capital
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    If a Firm Had the Following Mix of Capital Components
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If a Firm Had the Following Mix of Capital Components

Question 2

Question 2

Multiple Choice

If a firm had the following mix of capital components: If a firm had the following mix of capital components:   its capital structure would be described as: A) 25% debt and 75% equity B) 25% debt, 20% preferred stock, and 55% equity C) 45% debt and 55% equity D) both a and b its capital structure would be described as:


A) 25% debt and 75% equity
B) 25% debt, 20% preferred stock, and 55% equity
C) 45% debt and 55% equity
D) both a and b

Correct Answer:

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