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For most firms, the cost of capital decreases to a low point as the firm ________ debt financing. At some point beyond this optimal level,

For most firms, the cost of capital decreases to a low point as the firm ________ debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt ________.

A.

decreases; decreases

B.

increases; decreases

C.

decreases; increases

D.

increases; increases

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