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Financial economics argues that as the percentage of equity in the capital structure increases: 1) The required return on both equity and debt decrease. 2)

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Financial economics argues that as the percentage of equity in the capital structure increases: 1) The required return on both equity and debt decrease. 2) The required return on equity decreases and the required return on debt increases. 3) The required return on equity increases and the required return on debt decreases. 4) The required return on both equity and debt increase. Question 45 (1 point) DVA for a bank is most dependent on: 1) -The default probabilities of the bank in future time periods. 2) The default probabilities of the bank's counterparties in future times periods. 3) Both A and B. 4) Neither A nor B

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