Assuming no corporate taxes, the independence hypothesis suggests that a firm's weighted average
cost of capital will
A) increase proportionally with the increase in the amount of debt a firm uses.
B) decrease proportionally with the increase in the amount of debt a firm uses.
C) remain constant regardless of capital structure because the cost of debt and the cost of equity
are the same.
D) remain constant because the cost of equity will be increasing as the amount of debt increases
due to the increased risk.
D
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Customer loyalty depends on quality products and:
A) quality relationships B) low prices C) free shipping D) custom installation E) little contact
When using your credit card frequently, it is wise to
A) pay off the balance every month. B) make only the minimum payment to conserve cash. C) use the card that offers the most points regardless of other provisions. D) Both A and C are correct.