Question: _______ and _______ are two factors that affect the theoretical equal relationship between cost of funds and required rate of return. A. Flotation costs; tax

_______ and _______ are two factors that affect the theoretical equal relationship between cost of funds and required rate of return.

A. Flotation costs; tax shield/saving

B. Depreciation; interest payment

C. Flotation costs; depreciation

D. Tax shield/saving; depreciation

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