Which of the following statements regarding the cost of capital and its effect on capital structure and investment choices is correct?
Which of the following statements regarding the cost of capital and
its effect on capital structure and investment choices is correct?
A. for an investment to be worthwhile, the expenses return must be greater than the cost of capital.
B. Because of tax advantages, it is cheaper to issue new equity than debt
C. all of these answers
D. Adding debt does not increase a company’s interest rate.