Changing the Capital Structure by Adding Debt Will Not

question 33

Multiple Choice

Changing the capital structure by adding debt will not:

• A) increase the return that shareholders require.
• B) increase default risk.
• C) decrease debtholder risk.
• D)increase the cost of debt.

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Definitions:

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Empowerment Skills

Abilities and competencies that enable individuals to gain control over their lives, including decision-making, problem-solving, and self-management.

Egalitarian People

Individuals who believe in the principle of equality, advocating for equal rights and opportunities for all.

Encouraging Behavior

Actions or words that promote confidence, motivation, or support in others, often aimed at fostering personal growth or overcoming challenges.