An Implicit Cost of Adding Debt to the Capital Structure

question 93

Multiple Choice

An implicit cost of adding debt to the capital structure is that it:

• A) adds interest expense to the operating statement.
• B) increases the required return on equity.
• C) reduces the expected return on assets.
• D) decreases the firm's beta.

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The requirement that a government must use fair procedures before depriving a person of his or her life, liberty, or property.

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The principle that ensures equitable treatment, justice, and non-discrimination in the processes and practices of individuals and institutions.