Why is debt cheaper than equity at the source of capital

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1. Discuss risk analysis in capital budgeting and why is it important in choosing projects to be pursued?

2. If you own 665 shares of Air Line Inc at $42.3, 280 shares of BuyRite at $55.55, and 380 shares of Motor City at $9.6, what are the portfolio weights of each stock?

3. Why is debt cheaper than equity at the source of capital?

Reference no: EM131897625

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