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nvestors typically accept a lower risk-adjusted rate of return on debt capital than on equity capital because: a. the yield to maturity on equity is

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nvestors typically accept a lower risk-adjusted rate of return on debt capital than on equity capital because: a. the yield to maturity on equity is inversely related to its market value. b. equity bears less residual risk than debt. c equity claims bear more risk than fixed claims on debt obligations. d. equity capital costs are tax deductible

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