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Which of the following statement is false?I. In case the firm wants to grow at a faster pace, it would be required to incorporate debt in its capital structure to a greater extent.II. If the firm has no long-term debt in its capital structure, it means that either it is risk-averse or it has a cost of equity capital or cost of retained earnings less than the cost of debt.Select the correct answer from the options given below.

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Which of the following statement is false?<br />I. In case the firm wants to grow at a faster pace, it would be required to incorporate debt in its capital structure to a greater extent.<br />II. If the firm has no long-term debt in its capital structure, it means that either it is risk-averse or it has a cost of equity capital or cost of retained earnings less than the cost of debt.<br />Select the correct answer from the options given below.






 
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