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True or False Questions. 1. Taking on additional debt will reduce the cost of equity? 2. Under MACRS depreciation, the taxlife of an asset and

True or False Questions. 1. Taking on additional debt will reduce the cost of equity? 2. Under MACRS depreciation, the taxlife of an asset and its economically uselul life are assumed to be the same 3. Ke represents an expected return to Stockidders as well as a cost to the firm 4. The cost of capital genevally vanies inversely with the size of the capital structure

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