Question
Which of the following may be true of the cost of debt and cost of equity? a: the weighted average cost of capital is the
Which of the following may be true of the cost of debt and cost of equity?
a: the weighted average cost of capital is the computed by assigning weights to the cost of the debt and cost of equity of a firm
b: the cost of debt for a firm is always equal to the cost of equity to the firm.
c: the cost of internally generated equity for a firm is greater than the cost of externally generated equity funds for the firm.
d: the cost of internally generated equity for a fir is less than the cost of debt for the firm
e: the cost of externally generated equity is the sum of the cost of debt and the cost of retained earnings
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