Assume there are no corporate or personal taxes. According to M&M Proposition:
Answer: The cost of equity rises as the firm increases its use of debt financing.
Assume there are no corporate or personal taxes. According to M&M Proposition:
Answer: The cost of equity rises as the firm increases its use of debt financing.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.