Question
A firm has a cost of equity of 10%, a cost of preferred of 9%, and an aftertax cost of debt of 5%. Given this,
A firm has a cost of equity of 10%, a cost of preferred of 9%, and an aftertax cost of debt of 5%. Given this, which one of the following will decrease the firm's weighted average cost of capital?
| A) redeeming the bond issue | ||
| B) decreasing the debt-equity ratio | ||
| C) issuing new equity securities | ||
| D) increasing the systematic risk level of the firm | ||
| E) issuing new debt |
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QFinance The Ultimate Resource
Authors: Various Authors
1st Edition
1849300003, 978-1849300001
