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    Exam 17: The Corporate Form and the Cost of Capital
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    The Cost of Capital to a Firm Is Equal to
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The Cost of Capital to a Firm Is Equal to

Question 39

Question 39

Multiple Choice

The cost of capital to a firm is equal to


A) a risk-free rate plus an equity premium.
B) a risk-free interest rate.
C) an equity premium charged by lenders.
D) the Treasury bill rate minus an equity premium.

Correct Answer:

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