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When a company's project results in a return and profit after interest and taxes which exceeds the cost of its debt financing: A both the

When a company's project results in a return and profit after interest and taxes which exceeds the cost of its debt financing:

A both the debt holders and shareholders can share in the profits

B. only the shareholders share in the profits

C.the interest payments to the debtholdersnay increase

D. its cost of capital increases

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