If the debt/assets ratio increases, the costs of both debt and equity decrease.?

Answer the following statement true (T) or false (F)


False

As the debt/assets ratio increases, the costs of both debt and equity rise, and the increasing costs of the two components begin to offset the fact that larger amounts of the lower-cost debt are being used. See 12-2: Determining the Optimal Capital Structure

Business

You might also like to view...

Coupons are not a favorite promotion tool for use in:

A) the United Kingdom. B) Belgium. C) the United States. D) Italy. E) Malaysia.

Business

Marketers are particularly interested in segmenting older Americans because they typically have two things that most of their younger counterparts do not: time and ________.

Fill in the blank(s) with the appropriate word(s).

Business

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience

a. True b. False Indicate whether the statement is true or false

Business

Which of the following is an example a wicked problem?

a. A startup that is running out of cash b. A founder who is determining her target market c. A venture striving to reduce childhood mortality d. A venture striving to diversity its offerings

Business