Top Posters
Since Sunday
p
36
34
C
18
I
13
n
13
a
12
11
C
11
s
11
11
m
11
10
New Topic  
wrote...
Posts: 997
Rep: 0 0
2 years ago
As debt is substituted for equity in the capital structure and the debt ratio increases, the behavior of the overall cost of capital is partially explained by ________.
A) the tax-deductibility of interest payments
B) the increase in the number of common shares outstanding
C) the reduction in risk as perceived by the common shareholders
D) the decrease in the cost of equity
Textbook 

Principles of Managerial Finance


Edition: 14th
Authors:
Read 62 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 957
2 years ago
Sign in or Sign up in seconds to unlock everything.
A
1
"It is better to fail in originality than to succeed in imitation."

Related Topics

New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  120 People Browsing
Your Opinion
Do you believe in global warming?
Votes: 186

Related Images
 109
 83
 64