If investors' aversion to risk rose, causing the slope of the SML to increase, this would have a greater impact on the required rate of return on equity, rs, than on the interest rate on long-term debt, rd, for most firms. Other things held constant, this would lead to an increase in the use of debt and a decrease in the use of equity. However, other things would not stay constant if firms used a lot more debt, as that would increase the riskiness of both debt and equity and thus limit the shift toward debt.
Answer the following statement true (T) or false (F)
True
Business
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Kali is explaining her request. She is working on the? ___________ of her message.
A. body B. introduction C. conclusion D. closing E. opening
Business
How does the WBS differ from the project network? How are WBS and project networks linked?
Fill in the blank(s) with the appropriate word(s).
Business
What is the difference between a homogeneous shopping product and a heterogeneous shopping product? Give specific examples of products that fit into each category to help illustrate your answer.
What will be an ideal response?
Business
Answer the following statement(s) true (T) or false (F)
Knowing a venture's pre-money valuation is not possible.
Business