Which of the following may be true concerning debt and equity?
A) 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 greater than the cost of equity for Firm B.
C) The cost of internally generated equity for Firm A is greater than the cost of externally generated equity funds for Firm A.
D) The cost of internally generated equity for Firm A is less than the cost of debt for Firm A.
E) None of the above could be true.
Correct Answer:
Verified
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