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Which of the following is a reason the effective cost of equity is higher than the effective cost of debt? Equity holders have the burden

Which of the following is a reason the effective cost of equity is higher than the effective cost of debt? Equity holders have the burden of voting for the board of directors Equity holders are much more likely to lose their entire investment if the company goes bankrupt Dividends are taxed at a lower rate for personal income tax purposes Once a company starts paying a dividend, it can never stop None of the Above

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