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QUESTION 15 Changing the capital structure by adding debt will: O A. reduce default risk O B. reduce the return that shareholders require OC. reduce

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QUESTION 15 Changing the capital structure by adding debt will: O A. reduce default risk O B. reduce the return that shareholders require OC. reduce the cost of debt OD. increase debtholder risk QUESTION 16 To calculate the present value of a business, the firm's free cash flows should be discounted at the firm's: O A after-tax cost of debt O B. weighted-average cost of capital OC. cost of equity D. pre-tax cost of debt

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