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Fect Question 2 0/2 pts Check all that apply. In Exhibit 9 of the CPK case, you were given market values of equity and market
Fect Question 2 0/2 pts Check all that apply. In Exhibit 9 of the CPK case, you were given market values of equity and market value of capital. Those calculation were implicitly assuming that: CPK will maintain a constant debt ratio in perpetuity. CPK will not incur any financial distress costs with increasing amounts of debt. CPK's equity beta will not increase with increasing amounts of debt. CPK's cost of debt will increase with increasing amounts of debt. CPK will maintain a constant debt level in perpetuity. Fect Question 2 0/2 pts Check all that apply. In Exhibit 9 of the CPK case, you were given market values of equity and market value of capital. Those calculation were implicitly assuming that: CPK will maintain a constant debt ratio in perpetuity. CPK will not incur any financial distress costs with increasing amounts of debt. CPK's equity beta will not increase with increasing amounts of debt. CPK's cost of debt will increase with increasing amounts of debt. CPK will maintain a constant debt level in perpetuity
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