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Homework answers / question archive / Who would have the highest cost of capital and who would have the lowest
Who would have the highest cost of capital and who would have the lowest. Rank from highest to lowest? a) Equity, Debt and Preferred b) Equity Preferred, Debt c) Debt, Equity and Preferred d) Debt, Preferred and Equity
Correct answer is b.Equity ,prefered and debt.
Equity has highest cost of capital
Preferred has less cost of capital than equity but higher than debt.
Debt has lowest cost of capital.
