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When a company takes on debt, what happens to their cost of equity, all else eq It goes up It goes down It is impossible

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When a company takes on debt, what happens to their cost of equity, all else eq It goes up It goes down It is impossible to generalize the relationship between capital structure and cost of equit It doesn't change Question 6 In general, in which quadrant would investors prefer their investments lie when graphing returns (y axis) against idiosyncratic risk (standard deviation of returns)? Upper right Upper left Lower left Lower right

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