Question
1. Explain why it is highly unlikely that the component costs of debt and equity would stay the same if new debt is issued and
1. Explain why it is highly unlikely that the component costs of debt and equity would stay the same if new debt is issued and the capital structure mix changes.
2. The CFO asks for general thoughts about taking on more debt. Aside from the cost of capital calculation, what other qualitative factors do you think a company must consider in making its decision?
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
