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The explicit cost of debt financing is the interest expense. The implicit cost(s) of debt financing is (are) the A. Decrease in the cost of equity as the debt-to-equity ratio increases. B. Increases in the cost of debt and equity as the debt-to-equity ratio increases. C. Increase in the cost of equity as the debt-to-equity ratio decreases. D. Increase in the cost of debt as the debt-to-equity ratio increases. |