Given that Firms X and Y are two separate entities,the cost of debt for X can be greater than the cost of equity for Y.

Name: Given that Firms X and Y are two separate entities,the cost of debt for X can be greater than the cost of equity for Y.
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Question

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The cost of debt and equity can vary for different firms based on a variety of factors such as creditworthiness, industry risk, market conditions, etc. It is possible for the cost of debt for one firm to be higher than the cost of equity for another firm.

Given That Firms X and Y Are Two Separate Entities,the