Which of the following statements is/are correct? 1 An increase in the cost of equity lead

Which of the following statements is/are correct？ 1 An increase in the cost of equity leads to a fall in share price 2 Investors faced with increased risk will expect increased return as compensation 3 The cost of debt is usually lower than the cost of preference shares

A.2 only

B.1 and 3 only

C.2 and 3 only

D.1, 2 and 3

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