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    Corporate Finance Study Set 5
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    Exam 17: Capital Structure in a Perfect Market
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    When Firm Borrows at the ________ Cost of Capital for Debt,its
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When Firm Borrows at the ________ Cost of Capital for Debt,its

Question 61

Question 61

Multiple Choice

When firm borrows at the ________ cost of capital for debt,its equity cost of capital ________.


A) low; rises
B) high; rises
C) low; decreases
D) high; decreases

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