Question
Which of these is the MOST explicit cost in adjusting the level of debt in the capital structure? Group of answer choices the discount rate
Which of these is the MOST explicit cost in adjusting the level of debt in the capital structure?
Group of answer choices
the discount rate which equates the PV of incremental cash inflows equal to the PV of incremental cash outflows.
the financial risk premium
how riskless the cost of financing is compared to the cost of equity.
the business risk premium
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
