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5. Assuming there are no taxes or transaction costs, what is (are) true regarding a firm's debt and equity: (A) the risk of debt can

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5. Assuming there are no taxes or transaction costs, what is (are) true regarding a firm's debt and equity: (A) the risk of debt can not exceed the risk of the firm, (B) the risk of equity can not exceed the risk of debt, (C) a higher debt ratio implies a higher cost of capital on equity, (D) a higher debt ratio implies a higher cost of capital on debt

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