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In which occasion, can you expect the companys market value to increase? 1) When the company increases the weight (%) of its owners equity in
In which occasion, can you expect the companys market value to increase?
1) When the company increases the weight (%) of its owners equity in its capital structure by paying out its long-term debt, if all other conditions unchanged. |
2) When the companys WACC decreases, if all other conditions remain the same. |
3) When the companys risk is perceived higher by the investors & creditors, if all other conditions remain the same. |
4) When a company continuously invests heavily into its current operations. |
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