Question $25$

A company has a capital structure that consists of $50\%$ debt and $50\%$ equity. Which of the following is generally true?

The cost of equity financing is greater than the cost of debt financing

II$.$ The weighted average cost of capital is less than the cost of equity financing unless the capital structure is all equity

III. The weighted average cost of capital is calculated on a before$-$tax basis

I and II only

II only

I. only

I, II and III

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