Answer 2 Questions Below

A firm decides to change its target capital structure by increasing the percentage of debt and decreasing the percentage of equity. What will happen to the WACC? The firm's level of debt is below its optimal percentage of debt. WACC will decrease WACC will increase O WACC will stay the same Depends on the tax rate Which of the following is correct level of riskiness for the following different component cost of capital? (First is most risky, last is least risky) O Preferred stock, common stock. debt Debt, common stock, preferred debt Common stock, preferred stock, debt Debt, preferred stock, common stock Common stock, debt, preferred stock