If a Firm Increases the Amount of Debt That It

question 43

Multiple Choice

If a firm increases the amount of debt that it has this could lead to an increase in:

• A)financial risk.
• B)the cost of equity.
• C)both the cost of equity and the financial risk.
• D)None of the above.

---

Definitions:

Social Support

The assistance and comfort received from friends, family, and others, crucial for mental health and coping with stress.

Benefits

Advantages or positive outcomes that arise from a specific action, condition, or decision.

Stereotype

A fixed and oversimplified image or idea of a particular type of person or thing, often based on limited or biased information.

Stereotypes

Oversimplified and widely held beliefs or generalizations about a particular group of people, which may not accurately reflect reality.