All Else Constant, an Increase in a Firm's Cost of Debt

question 97

Multiple Choice

All else constant, an increase in a firm's cost of debt:

• A)could be caused by an increase in the firm's tax rate.
• B)will result in an increase in the firm's cost of capital.
• C)will lower the firm's weighted average cost of capital.
• D)will lower the firm's cost of equity.
• E)will increase the firm's capital structure weight of debt.

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