Homework: Chapter_16 Score: 0 of 1 31 of 36 (10 complete) HW Score: 21.63% 7.79 of 36 pts P 16-31 (similar to) IFQ Dyrvon Corporation may be is a sportation using its valgas pine network Dywo's assets Currently have a more of 140 milion Themis apling the possibility of sing omon by seling part of its peine network and investing the 60 milion in a fibre-optic network to generate revers by selling high speed network bandwidth. Whereas this new investment is expected to increase prots, & will also substantially increase Dyson's risk. It Dyron is levered, would this investiment be more or less active to eat holder till Dyon had no debit? (Select the best choice below) O A Less attractiveHaving leverage will raise Dynion's equity cost of capital, making new investments less attractive OB. No difference. Leverage has no effect on how attractive the investment is OC. Less attractive Equity holders in a vered firm will prefer that the firm reduce its risk to minimize the possibility of defaut OD. More attractive Equity holders in a levered fim will benefit from an increase in the risk of the tow's investments O E. More attractive: The tax benefits of leverage will make the new investment more attractive