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Select the Most Clear and Concise Sentence

question 14

Multiple Choice

Select the most clear and concise sentence.


Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for the risk taken.

Cost of Debt

The effective rate that a company pays on its borrowed funds, which can include loans, bonds, and other forms of debt.

Debt/Equity Ratio

This ratio demonstrates the equity to debt proportion in the context of financing company assets.

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