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Although the Money Paid to Investors Is Both the Firm's

Question 1

Multiple Choice

Although the money paid to investors is both the firm's cost and the investors return:


A) certain adjustments prevent the effective cost and return from being the same.
B) adjustments must be made to keep the effective cost and return equal.
C) adjustments keep the costs of common and preferred equity equal but debt's cost is usually higher.
D) a and c

Correct Answer:

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