The Most Acceptable View of Capital Structure, According to the Text

question 20

Multiple Choice

The most acceptable view of capital structure, according to the text, is that the weighted average cost of capital

• A) first falls with moderate levels of leverage and then increases as a firm's leverage becomes high.
• B) does not change with leverage.
• C) increases proportionately with increases in leverage.
• D) increases with moderate amounts of leverage and then falls.

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