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Memphic Memphic
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6 years ago
The assumption that the firm's debt-equity ratio is constant means:
A) the firm's cost of capital will not fluctuate when it accepts a new project.
B) corporate taxes are the only imperfection.
C) the risk of its debt and equity will change when it accepts a new project.
D) the firm adjusts its leverage to maintain a constant debt-equity ratio in terms of book value.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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pbrown223pbrown223
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6 years ago
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Memphic Author
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6 years ago
Correct Slight Smile TY
africa143
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Just got PERFECT on my quiz
bkrandy
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2 hours ago
Good timing, thanks!
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