A firm's cost of financing, in an overall sense, is equal to its: Multiple Choice O yield from various kinds of marketable securities. rate of return of debt required by its investors. rate of return from various kinds of marketable securities. weighted average cost of capital. Although debt financing is usually the cheapest component of capital, it cannot be used to excess because: Multiple Choice the financial risk of the firm may increase and thus drive up the cost of all sources of financing the firm's share price will increase and raise the cost of equity financing interest rates may change. underwriting costs may change