1.3.a (5 marks) When debt-to-value ratio of a company rises from 0% to 100%, the...
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1.3.a (5 marks) When debt-to-value ratio of a company rises from 0% to 100%, the equity cost of capital would A. keep rising. B. keep falling C. remain constant. D. rise first and then remain constant. E. remain constant at first then start to rise. 1.3.b (5 marks) When debt-to-value ratio of a company rises from 0% to 100%, the debt cost of capital would A. keep rising. B. keep falling C. remain constant. D. rise first and then remain constant. E. remain constant at first then start to rise. 1.3.c (5 marks) When debt-to-value ratio of a company rises from 0% to 100%, the weighted average cost of capital would A. keep rising. B. keep falling C. remain constant. D. rise first and then remain constant. E. remain constant at first then start to rise
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