A firm has a cost of equity of 10 percent, a cost of preferred of 9 percent, and an aftertax cost of debt...?

A firm has a cost of equity of 10 percent, a cost of preferred of 9 percent, and an aftertax cost of debt...?

Postby benn12 » Sun Mar 13, 2011 3:15 pm

of 5 percent. Given this, which one of the following will decrease the firm's weighted average cost of capital?

a. redeeming the bond issue

b. decreasing the debt-equity ratio

c. issuing new equity securities

d. increasing the systematic risk level of the firm

e. issuing new debt
benn12
 
Posts: 75
Joined: Fri Jan 28, 2011 7:53 pm



Return to Debt Management



 


  • Related topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 0 guests

cron