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betterway betterway
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7 years ago
A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and current market value proportions:



Other things remaining constant, if the firm were to shift toward a capital structure with ________ the weighted average cost of capital will be higher.
A) 45% long-term debt, 40% common stock, and 15% preferred stock
B) 60% long-term debt, 20% common stock, and 20% preferred stock
C) 20% long-term debt, 60% common stock, and 20% preferred stock
D) 60% long-term debt, 30% common stock, and 10% preferred stock
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
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UlainUlain
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betterway Author
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6 years ago
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