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Borrowing Money Is a Better Alternative to Investing Additional Personal

Question 72

Multiple Choice

Borrowing money is a better alternative to investing additional personal funds because obtaining equity investment from others:


A) reduces the potential loss for any single investor.
B) allows lesser debt to be included in the capital mix.
C) increases the cost of capital for the business.
D) increases the weighted average cost (WAC) of the business.

Correct Answer:

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