Why do investors require that the firm's cost of equity exceed its cost of debt? Briefly explain.

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Financial Management Theory and Practice

ISBN: 978-1305632295

15th edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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Posted Date: Feb 22, 2024 05:21 AM

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Why do investors require that the firm's cost of equity exceed its cost of debt? Briefly explain.

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Investors require that the firms cost of equity exceed its cost of debt for several reasons 1 Higher ... View the full answer

Financial Management Theory and Practice

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