Two firms have the same debt to equity ratio and the same market capitalization rate. One has a lower average cost of d

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answerhappygod
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Two firms have the same debt to equity ratio and the same market capitalization rate. One has a lower average cost of d

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Two firms have the same debt to equity ratio and the same market
capitalization rate. One has a lower average cost of debt
than the other. The firm with the lower average cost of debt
will have a higher return on equity ratio, all other things being
equal.
Group of answer choices
True
False
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