Question
Which one of the following will occur if a firm borrows its optimal amount of debt? - The firms WACC will equal the firms unlevered
Which one of the following will occur if a firm borrows its optimal amount of debt?
- The firms WACC will equal the firms unlevered cost of capital, RU. - The levered value of the firm will exceed its unlevered value. - The firms WACC will be maximized. - The levered and the unlevered values of the firm will be equal.
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Analysis For Financial Management
Authors: Robert C. Higgins
12th International Edition
1260091910, 9781260091915
