Multiple Choice
A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can ________.
A) increase the proportion of long-term debt to decrease the cost of capital
B) increase the proportion of short-term debt to decrease the cost of capital
C) decrease the proportion of common stock equity to decrease financial risk
D) increase the proportion of common stock equity to decrease financial risk
Correct Answer:
Verified
Correct Answer:
Verified
Q103: Table 9.2<br>A firm has determined its optimal
Q104: The cost of retained earnings will always
Q105: Table 9.1<br>A firm has determined its optimal
Q106: Table 9.1<br>A firm has determined its optimal
Q107: Target weights are either book value or
Q109: The cost of preferred stock is the
Q110: The cost of capital acts as a
Q111: One measure of the cost of common
Q112: A firm has common stock with a
Q113: Target weights are either book value or