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If investors become more risk averse, the component cost of debt, rd (1-T), for use in the WACC will ____ whereas the component cost of
If investors become more risk averse, the component cost of debt, rd (1-T), for use in the WACC will ____ whereas the component cost of equity, rs, will _____ .
- A. decrease, decrease
- B. remain constant, remain constant
- C. increase, decrease
- D. decrease, increase
- E. increase, increase
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
