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Original answers only. DO NOT COPY FROM OTHER CHEGG ANSWERS OR GOOGLE PLEASE. Assume that the risk-free rate increases, but the market risk premium remains

Original answers only. DO NOT COPY FROM OTHER CHEGG ANSWERS OR GOOGLE PLEASE.

Assume that the risk-free rate increases, but the market risk premium remains constant. What impact would this have on the cost of debt? What impact would it have on the cost of equity?

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  • Critical Thinking Question at the end of the post

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