Question
A company incorporates additional debt finance into its capital structure. The level of operating risk is maintained as previously. Assuming perfect capital markets exist with
A company incorporates additional debt finance into its capital structure. The level of operating risk is maintained as previously.
Assuming perfect capital markets exist with no taxation, what should happen to the company's cost of equity and weighted average cost of capital (WACC)?
Cost of equity WACC
| A. | Increase Increase | |
| B. | Increase Constant | |
| C. | Constant Increase | |
| D. | Constant Constant |
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Venture Capital Islamic Finance And SMEs Valuation Structuring And Monitoring Practices In India
Authors: M. Durrani, G. Boocock
1st Edition
1403936382,0230626254
