A) Explain why debt is typically the cheapest source of financing for the firm and common stock the most expensive (hint there are two reasons why debt is the cheapestyou should mention them both). Note that the word Explain is not the same as list to get full credit

B) Given the statement in A (debt is typically the cheapest source of financing for the firm and common stock the most expensive), firms that want to minimize their cost of capital should get 99% of their total financing from debt and only 1% from common stock. True or False and explain.