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D Question 24 4 pts For each of the following theories of capital structure, briefly state/indicate what happens to the (1) cost of equity. (ii)

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D Question 24 4 pts For each of the following theories of capital structure, briefly state/indicate what happens to the (1) cost of equity. (ii) WACC, and (iii) value of the firm as the debt-equity ratio increases. (Example answers: stays the same, 1.1.1 then . then 1] [You can see the number (1) to (4). Please check the answers from (1) to (4)] M&M World with No Taxes M&M World with Taxes Trade-off Theory ?? (1) Cost of Equity Weighted Average Cost of Capital (WACC) Stays the Same ?? (2) then 1 Value of the Firm ?? (3) 1 ??(4) (1) 1 (2) 4 (3) + (4) then O (1) Stays the Same (2) Stays the Same (3) Stays the Same (4) Stays the same (1) T (2) (3) Stays the Same (4) 1 then (1) Stays the Same (2) 1 (3) Stays the Same (4) thg

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