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    Exam 3: Essential Concepts in Finance: Part B
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    If the New Common Stock Costs Are Greater Than the Cost
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If the New Common Stock Costs Are Greater Than the Cost

Question 143

Question 143

Multiple Choice

If the new common stock costs are greater than the cost of internal common equity, what will happen as the equity break point is passed?


A) The MCC will rise then fall.
B) The MCC will remain unchanged.
C) The MCC will fall.
D) The MCC will rise.

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