If the Debt/assets Ratio Increases, the Costs of Both Debt

question 34

True/False

If the debt/assets ratio increases, the costs of both debt and equity normally decrease. 

---

Definitions:

Sedimentary Layer

Stratified deposits formed from the accumulation of mineral and organic particles, often showing distinct bands that indicate different periods of deposition.

Relative Age

Relative age is a way of determining the sequence in which geological events occurred, without necessarily determining their specific age in years.

Boundary

A dividing line or border between different earth sciences phenomena, such as between tectonic plates or ecological biomes.

Tan Rock

A geological formation characterized by its light brownish color, which can vary based on mineral composition and weathering processes.