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Risk-Free Rate and Cost of Debit

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Assume that the risk-free rate increases. What impact would this have on the cost of debit? What impact would it have on the cost of equity?

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This solution discusses cost of debit and cost of equity.

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An increase in the risk-free rate will increase the ...

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Manal Elkhoshkhany, MBA
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  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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