All else constant, an increase in a firm's cost of debt: Multiple Choice could be caused by an increase in the firm's tax rate. will result in an increase in the firm's cost of capital. will lower the firm's weighted average cost of capital. will lower the firm's cost of equity. will increase the firm's capital structure weight of debt.

Question

19-04-2022
Business

contestada

All else constant, an increase in a firm's cost of debt: Multiple Choice could be caused by an increase in the firm's tax rate. will result in an increase in the firm's cost of capital. will lower the firm's weighted average cost of capital. will lower the firm's cost of equity. will increase the firm's capital structure weight of debt.

Respuesta :

ACCESS MORE

Otras preguntas

A plant grows at a rate inversely proportional to the temperature outside. at 45° , it grows 2 inches . how many inch it willgrow in per day at 50°?

after she gets a speeding ticket, susan's parents take her driver's license away for a month. this is an example of

Please help it's due to tomorrow

suppose i perform a double-slit experiment on 1,000 electrons. is it possible to predict the pattern they will make when they land?

in this exercise you are asked to approximate the growth of the world population using the logistic differential equation:

in 2010 polls indicated that 73% of americans favored mandatory testing of students in public schools as a way to rate the school. this year in a poll of 1,000

the payment of dividends and changes in the dividends payable account are classified as activities. (enter one word per blank.) need help? review these concept

Which expreion i equivalent to (w^(10)z^(4))/(w^(10)z^(-4)) for all value of w and z where the expreion i defined?

Select all that apply. Which began with early agricultural societies? A. drawing B. writing C. culture D. government E. hunting F. religion

Solve each equation for 'y'. Hint: y < 10 for each equation. O 5; 9 6; 5 6; 3 5; 4 2y = y + 5 y÷3-1=2 1 point

Tundexi Tundexi · Answer 1 · 2022-04-28T11:51:55+02:00

Any increase in a firm's cost of debt will will result in an increase in the firm's cost of capital.

What is a cost of debt?

This refers to an effective rate that a company pays on its debt such as a bond or loans to its creditors, debtholders etc.

As the cost of capital means the returns that are demanded by investors who are part of the ownership structure, then, any increase in the cost of debt will increase the investor's return.

Therefore, the Option E is correct.