using excel 8. Debt is relatively cheap compared to equity, why not...
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using excel
8. Debt is relatively cheap compared to equity, why not use 8090% debt? What would happen to the costs of debt and equity if a firm decided to alter the capital structure from 50% debt and 50% equity to 90% debt and 10% equity? Illustrate and explain. (hint: use both the Jersey shore t-shirt company A/B/C/D \& Capital Structure lecture notes) 9. Explain the theory of Beta. Specifically discuss the importance of being diversified with respect to risk
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