All Else Equal, Which of the Following Statements Is (Are)true

question 41

Multiple Choice

All else equal, which of the following statements is (are) true?

• A)The more debt a firm uses, the riskier its equity becomes, which, in turn, causes the value of both the debt and the equity to decrease.
• B)The lower the cost of capital of a firm, the higher will be its market value.
• C)The higher the P/E ratio, the higher the value of the firm will be.
• D)All of the above are true statements.

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Definitions:

Simple Messages

Communications that are straightforward and easy to understand, often with a clear and concise point.

Techniques

Specific methods or ways of doing something, often referring to particular skills in various fields.

Storytelling Method

A technique used in communications to convey messages or information through narrative, making the content more engaging and memorable.

Business Communications

The sharing of information between people within and outside of an organization for the purpose of commercial benefit.