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A corporation has concluded that its financial risk premium is too high. In order to decrease this, ...

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A corporation has concluded that its financial risk premium is too high. In order to decrease this, ...

A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can ________.
A) increase the proportion of long-term debt to decrease the cost of capital
B) increase the proportion of short-term debt to decrease the cost of capital
C) decrease the proportion of common stock equity to decrease financial risk
D) increase the proportion of common stock equity to decrease financial risk

Textbook

Principles of Managerial Finance

Edition: 14^th

Authors: Gitman, Zutter

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betterway Author

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This helped my grade so much Perfect

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