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    Financial Institutions and Markets
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    Exam 1: Overview of the Financial System
  5. Question
    A Firm Does Not Have to Repay Its Equity Funds
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A Firm Does Not Have to Repay Its Equity Funds

Question 91

Question 91

True/False

A firm does not have to repay its equity funds and is not obliged to pay dividends.Therefore equity is a cheaper source of funds than debt.

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