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Debt capital a. costs the least because it's the most risky to the firm (interest creates financial risk). b. costs the most because its safer
Debt capital
a. costs the least because it's the most risky to the firm (interest creates financial risk).
b. costs the most because its safer and therefore more desirable.
c. is cheapest because it's safest from the investor's perspective and interest is tax deductible to the issuing company.
d. costs more than preferred because preferred is the most stable security.
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