The marginal cost of capital rises? 1. because the cost of retained earnings exceeds the cost of new shares2. because the cost of new shares exceeds the cost of retained earnings3. if the firm issues secured debt instead of debentures4. if the firm issues debentures instead of secured debt
A. ?1 and 3
B. ?1 and 4
C. 2 and 3?
D. 2 and 4?
Answer: D
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Answer the following statement true (T) or false (F)
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