I. If with a substitution of debt for common stock then with no taxes and no costs

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I. If with a substitution of debt for common stock then with no taxes and no costs offinancial distress the WACC will:

increase decrease stay the same increase, decrease, or stay the same II. Ifdebt is substituted for stock with no taxes and no costs offinancial distress one would logically expect the cost ofstock equity to:

increase decrease stay the same increase, decrease, or stay the same III. (continue II).

One would expect the cost ofdebt to:

increase decrease stay the same increase, decrease, or stay the same

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The Capital Structure Decision

ISBN: 9781402072994

1st Edition

Authors: Harold Bierman

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Question Posted: Jun 10, 2024 02:04 AM

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I. If with a substitution of debt for common stock then with no taxes and no costs

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The Capital Structure Decision

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