Question
As I borrow more money (ceteris paribus): a. My equity capital becomes more valuable b.My equity capital becomes less valuable c. My WCC goes down
As I borrow more money (ceteris paribus):
a. My equity capital becomes more valuable
b.My equity capital becomes less valuable
c. My WCC goes down
d. It becomes easier to keep Return on Assets > WCC
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
