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Which of the following is not true: The risk of recapitalization increases a firm's required rate of return, Thelaims of preferred stockholders on the firm's

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Which of the following is not true: The risk of recapitalization increases a firm's required rate of return, Thelaims of preferred stockholders on the firm's earnings are junior to those of debt-holders Long-term state government securities are always less risky than corporate long term securities of the same maturity The cost of capital to the firm is equal to the equilibrium rate of return demanded by investors in the capital markets for securities with that degree of risk

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