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structure states, (subject to a number of assumptions such as zero transaction costs, no taxes, no agency costs, zero costs relating to financial distress), that;

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structure states, (subject to a number of assumptions such as zero transaction costs, no taxes, no agency costs, zero costs relating to financial distress), that; a. A higher level of financial leverage will not affect a firm's cost of equity b. The way a firm's assets are financed will affect the value of the firm's assets c. A decrease in financial leverage will increase a firm's weighted average cost of capital d. An increase in financial leverage will increase a firm's weighted average cost of capital e. Irrespctive of the level of financial leverage, the firm's weighted average cost of capital will not change

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