Question
A company like GE has trouble and its bond credit rating is cut from A to BBB. What happens to its cost of capital (assuming
A company like GE has trouble and its bond credit rating is cut from A to BBB. What happens to its cost of capital (assuming no change in its debt/equity mix)?
| Not enough information is given | ||
| No change in the cost of capital | ||
| The cost of capital goes down | ||
| The cost of capital goes up. |
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
