As the Proportion of Debt in the Capital Structure Increases

question 67

Multiple Choice

As the proportion of debt in the capital structure increases, investors require a ____ return and the value of existing debt will ____.

• A) higher; increase
• B) higher; decrease
• C) lower; increase
• D) lower; decrease

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Definitions:

Positive Symptoms

Manifestations in conditions such as schizophrenia, including hallucinations or delusions, which represent an excess or distortion of normal functions.

Major Depressive Disorder

A mood disorder characterized by a persistent feeling of sadness and loss of interest, affecting one's thoughts, behavior, feelings, and sense of well-being.

Seasonal Affective Disorder

A type of depression that's related to changes in seasons, typically starting in the late fall and early winter and going away during the spring and summer.

Bipolar Disorder

A mental disorder marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).