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  3. the cost of debt: a. is typically higher than the

The cost of debt: a. is typically higher than the cost of preferred stock b....

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Finance

The cost of debt:

a. is typically higher than the cost of preferred stock

b. is the highest component cost because corporations can generally deduct interest expense

c. is higher than the cost of capital

d. rises as the debt-to-total capital ratio rises

Please include a brief explanation of your answer.

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