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

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