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Can you please try to answer in 20 min? Thank you so much! Company borrows from a bank and as a result the share of
Can you please try to answer in 20 min?
Company borrows from a bank and as a result the share of debt in the company's total capital increases considerably. The most likely result is that: Select one: a. The cost of capital increases because debt is more expensive than equity b. The cost of capital decreases because debt is less expensive than equity c. The cost of capital remains unchanged d. The cost of capital decreases because the company pays high dividendsThank you so much!
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