Question
Which of the following occurs as a firm's D/E ratio increases? Multiple Choice A.Capital structure of the firm remains constant. B.Cost of equity declines. C.Cost
Which of the following occurs as a firm's D/E ratio increases?
Multiple Choice
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A.Capital structure of the firm remains constant.
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B.Cost of equity declines.
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C.Cost of debt declines.
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D.Weighted average cost of capital increases, at least initially.
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E.Equity risk also increases.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
