Question
Which one of the following is an implication of M&M Proposition II without taxes? A) A firm's optimal capital structure is 100 percent debt. B)
Which one of the following is an implication of M&M Proposition II without taxes?
A) A firm's optimal capital structure is 100 percent debt.
B) WACC is unaffected by the capital structure of a firm.
C) WACC decreases as the debt-equity ratio increases.
D) A firm's capital structure is irrelevant.
E) The risk of equity is affected by both financial and operating leverage.
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
1st Edition
1567930905, 978-1567930900
