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Use the following statements to answer this question:
I.Without taxes, the benefit of having debt on the WACC largely vanishes.
II.Preferred shares cost the same as common equity financing.
Envied Person
An individual who is the subject of envy due to possessing something desirable that others lack, such as wealth, talent, or status.
Envier
A person who feels discontent or covetousness with regard to someone else's advantages, success, or possessions.
Pareto Optimal
A state in resource allocation where it's infeasible to uplift one individual's status without inflicting loss on another.
Allocation
The process of distributing resources or goods among various accounts or individuals, based on specific criteria or decisions.
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