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Other Fields Homework Help Finance Topic started by: booboo123 on Mar 18, 2024



Title: Cynergy Inc. currently has a debt-equity ratio of 0.70, an after-tax cost of debt of 7.5%, and a ...
Post by: booboo123 on Mar 18, 2024
Cynergy Inc. currently has a debt-equity ratio of 0.70, an after-tax cost of debt of 7.5%, and a cost of equity of 14%. If the firm changes its debt-equity ratio to 0.40, it will

▸ not have an effect on the firm's capital budgeting decisions.

▸ cause the NPV of projects under consideration to decrease.

▸ decrease the firm's WACC.

▸ increase the firm's total debt.


Title: Re: Cynergy Inc. currently has a debt-equity ratio of 0.70, an after-tax cost of debt of 7.5%, and a ...
Post by: birdnugget on Mar 18, 2024
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