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

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