MCQOPTIONS
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				| 1. | 
                                    In large expansion programs, increased riskiness and floatation cost associated with project can cause | 
                            
| A. | rise in marginal cost of capital | 
| B. | fall in marginal cost of capital | 
| C. | rise in transaction cost of capital | 
| D. | rise in transaction cost of capital | 
| Answer» B. fall in marginal cost of capital | |