Question
Why is the expected return on common equity always higher than the expected return on debt? Group of answer choices Debt cannot legally have much
Why is the expected return on common equity always higher than the expected return on debt?
Group of answer choices
Debt cannot legally have much expected return.
Equity has less risk than debt
Debt has less risk than equity
Equity can only have a positive beta
When planning a firm's capital structure, we are striving for the weighted average cost of capital (WACC) that:
Group of answer choices
Balances the weights as evenly as possible between debt and equity
Balances the rates on debt and equity as evenly as possible
maximizes the value of the firm
Minimizes the value of the firm
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