Whenever there is increase in financial leverage, both cost of debt and cost of equity increases, however in the absence of corporate taxes overall cost of capital remains constant. If overall value of the firm is your registration number than based on the following information explain the statement. 10 Debt Equity kd rassets ke WACC 0 % 100% 8% 12% ? ? 25% 75% 8% 12% ? ? 75% 25% 8% 12% ? ? 100% 0% 8% 12% ? ?

REGITRATION NUM IS 312