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2pts A firm can obtain its long-term financing through debt, ordinary equity and preference equity. We would expect: debt to be the cheapest source of

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2pts A firm can obtain its long-term financing through debt, ordinary equity and preference equity. We would expect: debt to be the cheapest source of capital because it is the least risky for investors to supply and interest payments are tax deductible preference shares to be the most expensive source of capital, because they are a riskier investment than ordinary shares for Investors O preference shares to be the cheapest source of capital because it is the least risky for investors to supply and preference dividends have priority over ordinary dividends ordinary equity to be the cheapest source of capital because it is the least risky for investors to supply and dividend payments are not obligatory debt to be the most expensive source of capital, given its non-repayment can lead to the firm's bankruptcy

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