Which One of the Following Will Affect the Capital Structure

question 34

Multiple Choice

Which one of the following will affect the capital structure weights used to compute a firm's weighted average cost of capital?

• A)decrease in a firm's tax rate
• B)increase in the market risk premium
• C)increase in the market value of the firm's ordinary shares
• D)increase in the firm's beta
• E)decrease in the book value of a firm's equity

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