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Assume a company's cost of equity exceeds its pretax cost of debt. Given this assumption and assuming all else is held constant, the company's WACC
Assume a company's cost of equity exceeds its pretax cost of debt. Given this assumption and assuming all else is held constant, the company's WACC must increase if the A.) tax rate increases. B.) company's beta increases. C.) pretax cost of debt decreases. D.) debt-to-equity ratio increases. E.) market risk premium decreases.
Assume a company's cost of equity exceeds its pretax cost of debt. Given this assumption and
assuming all else is held constant, the company's WACC must increase if the
A.) tax rate increases.
B.) company's beta increases.
C.) pretax cost of debt decreases.
D.) debt-to-equity ratio increases.
E.) market risk premium decreases.
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