Question: Which is a true statement B. Debt has $0 marginal cost A. Flotation cost must be considered with retained earnings E. Since taxes are required

Which is a true statement

B. Debt has $0 marginal cost

A. Flotation cost must be considered with retained earnings

E. Since taxes are required they are not a factor to investors

D. The investor required rate of return is the firm"s costs of capital

C. In general the after-tax cost of debt is the most expensive component in the cost of capital

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION

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