Since the Component Cost of Debt Is Less Than the Component

question 174

True/False

Since the component cost of debt is less than the component cost of equity, a shift in the composition of a firm's capital structure towards debt will always reduce a firm's cost of capital.

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Definitions:

Dysmenorrhea

The medical term for painful menstrual cramps that occur just before or during the menstrual period.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans, marking the onset of reproductive capability.

Menorrhagia

Excessive or prolonged menstrual bleeding at regular menstrual cycle intervals.