Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company takes on new debt, and uses the money to

A company takes on new debt, and uses the money to repurchase own shares. (Assume...

80.2K

Verified Solution

Question

Finance

image

A company takes on new debt, and uses the money to repurchase own shares. (Assume Modigliani-Miller propositions with no taxes). What will happen? A Debt-to-equity ratio decreases. B The shares' risk and return increase. The shares' risk and return will be unchanged. G D The shares' risk and return decrease

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A person starts walking from home and walks: 3 miles East 5 miles Southeast 6 miles South 2 miles...

Basic Math
Q

a) Explain what factors, structures, and ion channels contribute to establishing and maintaining the resting membrane...

Biology
Q

What is the role of HCG during pregnancy? What does progesterone do during pregnancy? Explain how estrogen...

Medical Sciences
Q

If you know the mass of a star and an object

Physics
Q

Given the age ( M = 19.83, SD = 3.07) of participants attending a kickboxing class,...

Basic Math
Q

The given line markings show how the roads in a town are related to each...

Geometry
Q

x y z 0 3 2 x 4 2 1 1 x y 2 1...

Geometry
Q

A rental truck costs $45.45 for a day plus 74 per mile.(a) If x is...

Basic Math
Q

Kuta Software Infi Date Parallel Lines and Transversals Identify each pair of angles as corresponding...

Algebra
Q

Sketch the graph of y 3 2 specify the domain range intercept s and asymptote...

Algebra
Q

Using the information from your answer to above part, write the cost formula. (Round per...

Accounting
Q

bid en jobs that it currenth isn t eogdoped to do. fmimaties revarding each machine...

Accounting