What Will Happen to the Required Return on Assets as a Result

question 128

Multiple Choice

What will happen to the required return on assets as a result of changing to a more debt-intensive capital structure?

• A)It will decrease
• B)It will increase
• C)It will remain unchanged although individual investor requirements will shift
• D)The required rates of return for assets, debt holders, and equity holders will all remain constant

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Definitions:

Development Goals

Long-term aims or objectives that guide personal, professional, or societal growth and improvement.

Improve Oneself

The process of self-enhancement through activities that increase self-awareness, develop talents, and potential, and contribute to the realization of dreams and aspirations.

Long Term

Relating to a period of time that extends far into the future; often in contrast to short-term or immediate.

Operant Conditioning

A developmental procedure where the force of a response is changed by either encouragement or discipline.