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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 13: Leverage and Capital Structure
  5. Question
    As Financial Leverage Increases, the Cost of Debt Initially Remains
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As Financial Leverage Increases, the Cost of Debt Initially Remains

Question 44

Question 44

True/False

As financial leverage increases, the cost of debt initially remains constant and then rises, while the cost of equity always rises.

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