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In a perfect capital market, the weighted-average cost of capital is defined as: r=reVE+rdVD. In this setting: A. re only differs from rd because of

In a perfect capital market, the weighted-average cost of capital is defined as: r=reVE+rdVD. In this setting: A. re only differs from rd because of transaction costs associated with issuing equity. B. rd depends upon the firm's marginal tax rate. C. r is always equal to rd. D. re is always greater than rd

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