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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 13: Leverage and Capital Structure
  5. Question
    The Cost of Equity Increases with Increasing Financial Leverage in Order
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The Cost of Equity Increases with Increasing Financial Leverage in Order

Question 35

Question 35

True/False

The cost of equity increases with increasing financial leverage in order to compensate the stockholders for the higher degree of financial risk.

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