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How would a company's cost of capital calculated from book values be affected if the company's bonds were selling for more than face value? A.

How would a company's cost of capital calculated from book values be affected if the company's bonds were selling for more than face value?

A. The effect depends on the bonds' coupon rate.

B. The cost of capital would decrease.

C. The cost of capital would increase.

D. The cost of capital would not be affected.

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