A firm's current balance sheet is as follows: Assets 5110 Debt Equity 544 566 curent belanct sheet. Rlound veuf answers to the nearest doller. Assets 8110 Debt Eevity What course of action should the fass take? Round your answer to the abarst whole number since the firm is cutfently using \% deth Ananciog, it at its eptimai capital structure and c. As a firm incilly subututes debt for eoutr financing, what haspens to the ceat of captal? The cost of capital initialy 4. If a form was too much debt francing: why dees the cost at casital nse? If a firm uses too much detor financing, the firm becemes fonandely leveraped and riskier. This cavies the interest rate to ind the cont of equitr to These changes in the cost of delit and equity cause the cost of capral ta