Business, 16.12.2020 16:10 vanydparis

If a firm increases its percentage of debt in its capital structure, what will happen to kcs, everything else being equal? a. will increase, because expected cash-flow growth will be higher.
b. kcs will decrease, because the cost of debt is lower than the cost of equity.
c. kcs will increase, because the stock's beta will increase if the firm uses a higher percentage of debt.
d. kcs will decrease, because the stock's beta will decrease if the firm uses a higher percentage of debt.

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If a firm increases its percentage of debt in its capital structure, what will happen to kcs, everyt...

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