Question: Equity can be valued like a call option if the firm is also financed by risky debt. True False Question 3 1 pts Historically, IPO

 Equity can be valued like a call option if the firm

Equity can be valued like a call option if the firm is also financed by risky debt. True False Question 3 1 pts Historically, IPO stocks have higher long-run returns than comparable nonIPO stocks on average. True False Question 4 1 pts The primary benefit of debt according to tradeoff theory is the cheaper cost/rate. True

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