In the traditional approach to capital structure, as the amount of debt increases in a firm's capital structure, ________
A) the cost of equity rises faster than the cost of debt
B) the cost of debt rises faster than the cost of equity
C) debt becomes less risky
D) equity cost is unaffected
A
Business
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Column 1 Column 2 Column 3 Owner's Capital
What will be an ideal response?
Business
Accumulated Depreciation
a. increases when the monthly adjustment for depreciation is recognized. b. decreases when the monthly adjustment for depreciation is recognized. c. is reported on the income statement with the expense accounts. d. is allocated as an expense during future periods.
Business