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Which of the following statements is true concerning debt and equity? A. In most cases, the cost of debt for Firm A is greater than

Which of the following statements is true concerning debt and equity?

A. In most cases, the cost of debt for Firm A is greater than the cost of equity for Firm A.

B. The cost of debt for Firm A is lower than the cost of equity for Firm A for most cases.

C. The after-tax cost of debt is higher than the before-tax cost of debt.

D. The cost of debt decreases as the debt to asset ratio increases.

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