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    Corporate Finance Study Set 5
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    Exam 17: Capital Structure in a Perfect Market
  5. Question
    The Cost of Capital of Levered Equity Is ________ the Cost
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The Cost of Capital of Levered Equity Is ________ the Cost

Question 79

Question 79

Multiple Choice

The cost of capital of levered equity is ________ the cost of capital of unlevered equity plus a premium that is proportional to the market value debt-equity ratio.


A) greater than
B) smaller than
C) equal to
D) not related to

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