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Question

The cost of equity share capital is greater than the cost of debt because_________.

A The face value of equity shares is lower than the face values of debentures in most cases

B Equity shares do not provide a fixed dividend rate

C Equity shares carry a higher risk than debts

D Equity shares are not easily saleable

E The cost of equity is generally fixed and does not vary over time

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Relevant for Exams:

IIFCL Grade A/B

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