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    Exam 12: Capital Structure
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    As a Firm Increases Its Use of Debt Financing, What
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As a Firm Increases Its Use of Debt Financing, What

Question 8

Question 8

Multiple Choice

As a firm increases its use of debt financing, what is the impact upon the cost of equity?


A) The cost of equity decreases.
B) The cost of equity remains the same.
C) The cost of equity increases.
D) None of the above.

Correct Answer:

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