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One reason that the required rate of return on shares is generally more than on interest-yielding securities is because: a. borrowers may default on payments.
One reason that the required rate of return on shares is generally more than on interest-yielding securities is because:
a.
borrowers may default on payments.
b.
the returns on shares are higher than on interest-yielding securities.
c.
debtholders rank ahead of shareholders in case of default.
d.
shareholders rank ahead of debtholders in case of default.
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