The WACC for a company is 10%. The company announced a debt offering that raises the WACC to 13%. The most likely conclusion is that for the company:
A. the company's prospects are improving
B. equity financing is cheaper than debt financing
C. the company's debt/equity ratio has moved beyond the optimal range
Ans: C. the company's debt/equity ratio has moved beyond the optimal range
Business
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The organization may demote an employee to a lower-level position:
A. to provide greater challenges to him/her. B. so that the employee can learn different skills. C. to increase the employee's visibility. D. so that the employee can get more authority. E. to give him/her more responsibility.
Business
When considering expected returns, the states of the world must sum to 1 (or 100%)
Indicate whether the statement is true or false.
Business