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1. Are taxes necessary for the cost of debt financing to be less than the cost of equity financing?

1.    Are taxes necessary for the cost of debt financing to be less than the cost of equity financing?



1.    You would like to own shares that have a record date of Friday 19 March 2018. What is the last date that you can purchase the share and still receive the dividend?

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(1) Though taxes are a reason which results in cost of debt being lower than cost of equity as the Debt financing enjoys tax... View the full answer

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