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    Exam 4: Applying the Time Value of Money to Security Valuation
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    As Debtholders Rank Ahead of Shareholders It Is Expected That
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As Debtholders Rank Ahead of Shareholders It Is Expected That

Question 25

Question 25

True/False

As debtholders rank ahead of shareholders it is expected that the required rate of return on debt will be less than the required rate of return on shares.

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