If interest expense lowers taxes, why does the WACC not decrease indefinitely with the addition of more debt?
A) The tax shield effect of debt will result in a lower cost of equity.
B) Increasing debt too much can result in a greater likelihood of firm failure (financial distress).
C) A firm's common stock price will not be affected by the amount of debt a firm uses.
D) Too much common equity increases the probability of bankruptcy.
A) The tax shield effect of debt will result in a lower cost of equity.
B) Increasing debt too much can result in a greater likelihood of firm failure (financial distress).
C) A firm's common stock price will not be affected by the amount of debt a firm uses.
D) Too much common equity increases the probability of bankruptcy.
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The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for
A. Not-for-profit organizations. B. State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities. C. State and local governments and all not-for-profit organizations. D. Governments such as federal agencies, states, cities, counties, villages, and townships.
I will (cite, sight, site) the data on the financial (assistance, assistants) that we are giving to senior citizens
What will be an ideal response?
During 2019, Ocean Consulting had the following transactions with it clients (customers):On February 1, 2019, the company received cash of $10,000 from clients in payment of their account balances as of December 31, 2018. On November 1, 2019, the company received $4,000 cash as payments in advance for services to be performed in 2020. The company received a total of $26,000 in cash for services that were performed during 2019. The company sent bills totaling $8,000 to clients for services performed during 2019; this amount was unpaid as December 31, 2019. As a result of these transactions during 2019, the firm's stockholders' equity will:
A. increase by $40,000. B. increase by $34,000. C. decrease by $10,000. D. decrease by $4,000.
It has become common to post your résumé online at various job sites such as Monster, CareerBuilder, Yahoo, and others
Indicate whether the statement is true or false