Which of the following statements is correct? a. since debt financing is cheaper than equity financing, raising a company's debt ratio will alwaysreduce its wacc. b. increasing a company's debt ratio will typically reduce the marginal cost of both debt and equityfinancing. however, this action still may raise the company's wacc.*c. increasing a company's debt ratio will typically increase the marginal cost of both debt and equityfinancing. however, this action still may lower the company's wacc.*d. since a firm's beta coefficient it not affected by its use of financial leverage, leverage does notaffect the cost of equity. e. since debt financing raises the firm's financial risk, increasing a company's debt ratio will alwaysincrease its wacc.

Free of jargon and technical language

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answerwinchell would use the residual method($120-$100)=$20;