Pergunta 7\

0,(25)/(0.25)

pontos\ Alpha Beta Corporation maintains a constant debt-equity ratio of 0.5 . The total value of the firm is

$30

million. and existing debt is riskless. Over the next three months, news will come out that will either raise or lower Alpha Beta's value by 10%. How will Alpha Beta adjust its debt level in response to keep its debt-equity ratio constant?\ There will be no change - the debt-equity ratio will remain constant.\ Either increase by

$3

million or decrease by

$3

million.\ Either increase by

$1.5

million or decrease by

$1.5

million.\ Either increase by

$1

million or decrease by

$1

million.

Pergunta 7 Alpha Beta Corporation maintains a constant debt-equity ratio of 0.5 . The total value of the firm is $30 million, and existing debt is riskless. Over the next three months, news will come out that will either raise or lower Alpha Beta's value by 10%. How will Alpha Beta adjust its debt level in response to keep its debt-equity ratio constant? There will be no change - the debt-equity ratio will remain constant. Either increase by $3 million or decrease by $3 million. Either increase by $1.5 million or decrease by $1.5 million. Either increase by $1 million or decrease by $1 million