QUESTIONS Which of the following is CORRECT? a che contend to reduce the cost of equity capital The cost of debt is always greater than the interest rate on debt, provided the company does in fact pay taxes Octomy is the same cost of capital to all of its projects regardless of each project's risk, then the company is likely to reject some safe projects that it y should send to wept some risky projects that it should reject de notions are required to obtain capital as retained earnings, the cost of retained earnings is generally lower than the after tax cost of debt. Spitalcance to go bankrupt but equity capital cannot debt is riskier than equity, and thus the after-tax cost of debt is always greater