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3. Explain the following. a) Relationship between risk and rate of returns. b) How do you estimate a firm's cost of new debt

3. Explain the following.

a) Relationship between risk and rate of returns.

b) How do you estimate a firm's cost of new debt financing?

c) Does dividend policy affect stock price? Explain

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a Relationship between risk and rate of returns The relationship between risk and rate of returns is a fundamental concept in finance known as the riskreturn tradeoff Generally higher levels of risk a... blur-text-image

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