Which of the Following Is a True Statement

question 49

Multiple Choice

Which of the following is a true statement?

• A) A firm's cost of debt increases with the use of equity in the capital structure.
• B) A firm's cost of equity increases with the use of equity in the capital structure.
• C) A firm's cost of equity increases with the use of debt in the capital structure.
• D) A firm's cost of equity decreases with the use of debt in the capital structure.

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Definitions:

Circular Runout

A tolerance that controls the uniformity of a feature's surface as it is rotated about a datum axis.

Eccentricity

Eccentricity refers to the degree to which a geometric shape’s center does not align with a reference axis or point, crucial in designing rotating parts to minimize imbalance.

Cylindricity

A form tolerance that defines how much a cylindrical feature's actual profile may deviate from a perfect cylinder.

Total Runout

Total runout is a tolerance that controls the total variation a surface can have when it is rotated around an axis or datum.