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An increase in a corporation's marginal tax rate will decrease the corporation's cost of debt,...

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An increase in a corporation's marginal tax rate will decrease the corporation's cost of debt, but have no impact on its cost of preferred stock or cost of common equity. Select one: True False Investors require higher rates of return to compensate for purchasing power losses resulting from inflation. Select one: True False Stocks that plot above the security market line are underpriced because their expected returns exceed their risk-adjusted required returns Select one: True O O O False

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