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c. A firm's stockholders will never want the firm to invest in projects with negative net present values. Comment on the above statement. (4 marks)

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c. "A firm's stockholders will never want the firm to invest in projects with negative net present values". Comment on the above statement. (4 marks) d. In a world with no taxes, no transaction costs and no costs of financial distress, "Moderate amount of borrowing will not increase the required return on a firm's equity" Is the above statement true or false? Explain. (2 marks)

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