Question
What happen to the value of your firm, holding risk constant, when it implements projects with a rate of return above the cost of capital.
What happen to the value of your firm, holding risk constant, when it implements projects with a rate of return above the cost of capital. And explain why the cost of debt is usually cheaper than the cost of equity.
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
