As the need for capital increases beyond the optimum capital structure, the cost of debt financing will ________, ________ the firm's weighted average cost of capital
A) increase; lowering
B) increase; raising
C) decrease; lowering
D) decrease; raising
B
You might also like to view...
Answer the following statements true (T) or false (F)
1. Employees at any level can be trained to be more transactional, but transformational leadership is possible only among top managers. 2. Lack of honesty and trust can hurt transformational leaders because they lose credibility. 3. The leader-member exchange (LMX) model presupposes stable and uniform relationships between leaders and followers. 4. In leader-member exchange, an out-group exchange is characterized by mutual trust, respect, and a sense of common fates.
"Just Do It" is a famous tagline used by the Nike Corporation. Which of the following types of intellectual property would this tagline come under?
A) patent B) trade secret C) trademark D) copyright
How does the strategy for achieving organizational outcomes paradigm differ from the others?
a. It focuses on diversity management as a means, not as an end b. It involves more senior levels of management to implement c. Unlike the others, it has not yet been validated by empirical research d. The business operations department's are responsible for implementation not the HR department
Apollo Tires sets up a manufacturing unit in Mexico. Following this, Renault-Nissan signs a supply contract with the tire multinational. In which of the following ways is Renault-Nissan likely to gain from the pact?
A. growth potential and large size of the market B. knowledge sharing within same value chain system C. availability of natural resources at low cost D. different styles of management, organization, and strategy E. government policies in the host country