Poor Capital Structure Decisions Can Result in ________ the Cost

question 157

Multiple Choice

Poor capital structure decisions can result in ________ the cost of capital, resulting in ________ acceptable investments. Effective capital structure decisions can ________ the cost of capital, resulting in ________ acceptable investments.

• A) increasing; fewer; lower; more
• B) decreasing; more; higher; fewer
• C) increasing; more; lower, fewer
• D) decreasing; fewer; higher; more

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Definitions:

Metamorphic Rocks

Rocks that have undergone transformation in their mineral composition or structure due to extreme heat, pressure, or chemically active fluids.

Effervescence

The property of releasing gas bubbles when reacting with a liquid; often observed in minerals and compounds that fizz or bubble when acid is applied.

Magmatism

The process of magma generation, movement, and solidification, which contributes to the formation of igneous rocks.

Cleavage

The tendency of a mineral to break along flat, well-defined planes, reflecting its crystal structure.