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Question 1 0.5 pts A firm will prefer to issue preferred stock rather than debt because the dividend is tax deductible. O True O False

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Question 1 0.5 pts A firm will prefer to issue preferred stock rather than debt because the dividend is tax deductible. O True O False Question 2 0.5 pts The optimal capital structure minimizes the weighted average of the cost of debt and the cost of equity. True O False

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