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For each of the statements below, state whether you agree or disagree. This should be followed by a rationale (roughly a paragraph). Your justification should
For each of the statements below, state whether you agree or disagree. This should be followed by a rationale (roughly a paragraph). Your justification should be grounded in corporate finance theory and a clear understanding of finance practice.
A: A company which does not borrow money cannot fail.
B: A company, that pays taxes, can reduce the cost of equity and the weighted average cost of capital by reducing the proportion of debt in its firm's capital structure.
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