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Which of the following is NOT correct about leverage? a. Firms cost of equity goes up with increased leverage b. Firm value may go down

Which of the following is NOT correct about leverage?

a. Firms cost of equity goes up with increased leverage

b. Firm value may go down with increased leverage c. A firm may have financial distress costs even with zero debt as bankruptcy is costly for every firm d. Leverage may lead to financial distress e. Interest payments on debt are tax deductible

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