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Question 8 3 pts Uriah Inc. is financed with 50% equity and 50% debt in market value terms. In a perfect capital market (no taxes,

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Question 8 3 pts Uriah Inc. is financed with 50% equity and 50% debt in market value terms. In a perfect capital market (no taxes, no bankruptcy costs, no financing frictions), if Uriah produces substantial positive cash flows and uses that cash to reduce debt in the capital structure, what will be the most likely impact to the cost of equity capital (re)? O re does not change O re decreases O re increases

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