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Commerce · Q576

Business Finance

Graduate and Post Graduate · Commerce · question 576

Q576

The cost of equity share capital is more than the cost of debt because

A.
Equity shares are not easily saleable
B.
Equity shares do not provide a fixed dividend rate
C.
Generally, the face value of equity shares is less than the face value of debentures
D.
Equity shares havehigh risk than debts
Answer

Answer: Option D

Solution

Answer: Option D
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