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Which of the following statements is true? A. When a firm can issue bonds of equal or higher priority than its existing bonds, the value

Which of the following statements is true?

A. When a firm can issue bonds of equal or higher priority than its existing bonds, the value of the firm is decreased due to the higher cost of debt capital

B. None of them

C. Although the value of a firm is unchanged if it can issue debt of equal or greater priority to its existing debt, its cost of debt capital will be higher

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