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    g93309gg's Avatar
    g93309gg Posts: 1, Reputation: 1
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    #1

    Oct 4, 2007, 10:31 PM
    Business Finance
    How would an increase in debt affect the cost of capital?
    ake_finance's Avatar
    ake_finance Posts: 19, Reputation: 1
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    #2

    Oct 5, 2007, 11:11 AM
    Increase in debt will reduce the cost of capital because cost of debt is always lower than cost of equity.
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