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1.A firm with no debt decides to issue debt. Which of these is false? a.The action should provide a higher return to the equity holders

1.A firm with no debt decides to issue debt. Which of these is false?

a.The action should provide a higher return to the equity holders

b.The cost of debt is lower than the cost of equity

c.The cost of debt might sometimes be higher than the cost of equity

d.This is a mistake if the firm cannot invest the proceeds in projects that return a higher rate of return than the adjusted Weighted Average Cost of Capital.

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