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1) Which one of the following is the primary determinant of a firm's cost of capital? A) Debt-equity ratio of any new funds raised B)

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1) Which one of the following is the primary determinant of a firm's cost of capital? A) Debt-equity ratio of any new funds raised B) Marginal tax rate C) Pretax cost of equity D) Aftertax cost of equity E) Use of the funds raised

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