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Which one of the following is a correct statement? (Points : 4) Current tax laws favor debt financing. A decrease in the dividend growth rate
Which one of the following is a correct statement? (Points : 4) Current tax laws favor debt financing. A decrease in the dividend growth rate increases the cost of equity. An increase in the systematic risk of a firm will decrease the firm's cost of capital. A decrease in a firm's debt-equity ratio will usually decrease the firm's cost of capital. The cost of preferred stock decreases when the tax rate increases
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