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This question focuses on debt, preferred stock, common stock and retained earnings. Make sure that you provide a complete explanation regarding common stock compared to

This question focuses on debt, preferred stock, common stock and retained earnings. Make sure that you provide a complete explanation regarding common stock compared to retained earnings. If we construct a graph that has the cost of capital on the vertical axis and the risk of the firm on the horizontal axis, what does the graph look like? Explain.

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