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    Corporate Finance Core
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    Exam 14: Capital Structure: Basic Concepts
  5. Question
    If R<sub>0</sub> Exceeds R<sub>B</sub> Then
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If R0 Exceeds RB Then

Question 6

Question 6

Multiple Choice

If R0 exceeds RB then


A) RS increases with leverage.
B) RWACC increases with leverage.
C) RS decreases with leverage.
D) RS remains constant as leverage changes.
E) RS = RB.

Correct Answer:

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