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Question 2 (1p): Why are corporations more likely to raise funds externally by debt instead o equity? Question 3: (1p) Comment on the statement: Indirect

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Question 2 (1p): Why are corporations more likely to raise funds externally by debt instead o equity? Question 3: (1p) Comment on the statement: "Indirect finance is far more important than dire finance". (Hints: Using the transaction cost theory and information asymmetry theory)

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