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URGENT, NEED ANSWERED ASAP!!! 1. Whathappenstothefinancialriskofafirmasitincreasestheamountofdebtinitscapitalstructure? 2 Whathappenstothecostofdebtandtothecostofequityasthefirmincreasestheamountofdebtinitscapitalstructure? 3.Howwouldmanagersofafirmgoabouttryingtofindtheoptimalcapitalstructureforthefirm? 4.Definethecostofequitycapital.Is it an accounting cost? Ifnot,whatisit? 5.Isitalowcostsourceofcapitalorahighcostsourcecomparedtootherpossiblesourcesofcapital?Explain. 6. Whatwouldhappentoafirmifitfailedtodelivertoitscommonstockholdersthecostofequitycapital?Thisquestionrefersonlytocommonequity.
URGENT, NEED ANSWERED ASAP!!!
- 1. Whathappenstothefinancialriskofafirmasitincreasestheamountofdebtinitscapitalstructure?
- 2 Whathappenstothecostofdebtandtothecostofequityasthefirmincreasestheamountofdebtinitscapitalstructure?
- 3.Howwouldmanagersofafirmgoabouttryingtofindtheoptimalcapitalstructureforthefirm?
- 4.Definethecostofequitycapital.Is it an accounting cost? Ifnot,whatisit?
- 5.Isitalowcostsourceofcapitalorahighcostsourcecomparedtootherpossiblesourcesofcapital?Explain.
- 6. Whatwouldhappentoafirmifitfailedtodelivertoitscommonstockholdersthecostofequitycapital?Thisquestionrefersonlytocommonequity.
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