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    Business
  3. Study Set
    Foundations of Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    The Cost of Debt Increases Relative to the Investor's Required
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The Cost of Debt Increases Relative to the Investor's Required

Question 120

Question 120

True/False

The cost of debt increases relative to the investor's required return due to flotation costs,but decreases relative to the investor's required return due to the tax deductibility of interest.

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