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Which of the following statements is true with respect to a firm's Capital Structure Decision? a. Interest paid on debt is tax deductible. b. Equity

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Which of the following statements is true with respect to a firm's Capital Structure Decision? a. Interest paid on debt is tax deductible. b. Equity is senior to debt in a firm's capital structure. c. Dividends paid on equity are tax deductible. d. Debt capital in a firm will always have a lower cost of capital than equity capital in a different firm. I e. All of the above

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