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3. The cost of common equity obtained by retaining earnings is the rate of return the marginal stockholder requires on the firm's common stock. *

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3. The cost of common equity obtained by retaining earnings is the rate of return the marginal stockholder requires on the firm's common stock. * O True False 4. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are tax deductible, O True O False

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