In a perfect capital market, leverage will increase the cost of levered equity only if the...
In a perfect capital market, leverage will increase the cost of levered equity only if the debt is not risk free
True or false
Homework Answers
ANSWER :FALSE
EXPLANATION: As In the case of perfect capital markets, the choice of equity or debt will not make a difference to the total value of a firm or its share price or the cost of capital.
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