explaining the reasons for the expected difference between the cost-of-equity and cost-of-debt, and the variation in these costs among different securities.

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explaining the reasons for the expected difference between the cost-of-equity and cost-of-debt, and the variation in these costs among different securities.

Discuss why cost-of-equity, ke, is generally expected to be greater than the cost-of-debt, kd, and why
ke and kd vary among securities.

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