Question
1) Assuming that a firm pays taxes, a relatively small increas in the DEBT to EQUITY Ratio should result in: a) No change in the
1) Assuming that a firm pays taxes, a relatively small increas in the DEBT to EQUITY Ratio should result in:
a) No change in the value of the firm's WACC or value.
b) A decrease in the firm's WACC and a decrease in the value of the firm.
c) An increase in the firm's WACC and an increase in the value of the firm.
d) An increase in the firm's WACC and a decrease in the value of the firm.
e) A decrease in the firm's WACC and an increase in the value of the firm.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
