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Business, 01.12.2021 02:10 jonmorton159

Investors typically accept a lower risk-adjusted rate of return on debt capital than on equity capital because A. equity bears less residual risk than debt. B. the yield to maturity on equity is inversely related to its market value C. debt is typically less risky because fixed claims bear less residual risk than equity claims. D. equity capital costs are tax deductible.

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