What affect would an increase in the cost of bankruptcy have on the capital structure of a firm? Business risk will increase, so firms will use more debt and less equity Bankruptcy costs have no impact on the capital structure of firms Debt will become less expensive, so firms will use more debt and less equity Debt will become more expensive, so firms will use less debt and more equity If the required rate of return on a company's stock falls, the value of the company's stock should increase. True False