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Under MM with no taxes, as debt is Blank______ to capital structure, the cost of equity Blank______. Multiple select question. added; decreases removed; increases removed; decreases added; increases

Sagot :

removed; decreases; added; increases It means that when a debt is removed the cost of equity decreases and when a debt is added the cost of equity increases.

What is capital structure?

Capital structure is the specific mix of debt and equity utilized by an organization to fund its general tasks and development.

What is cost of equity?

The cost of equity alludes to two separate ideas, contingent upon the party in question. In the event that you are the investor, the expense of value is the pace of return expected on an interest in value. In the event that you are the organization, the cost of equity decides the necessary rate of return from a specific task or investment.

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