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In computing the cost of capital, do we use the historical cost of existing debt and equity, or the current cost as determined by
In computing the cost of capital, do we use the historical cost of existing debt and equity, or the current cost as determined by the market? Why is one method used over another? In general, which is a cheaper source of capital debt or equity? Why? In your opinion, is it better to finance a firm with more debt or more equity? Why?
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
