ICRQ. 11. How does 'cost of equity affect the choice of Capital struct – InterviewSolution

1.	ICRQ. 11. How does 'cost of equity affect the choice of Capital structure of a company
Answer» Thecost of equityis typically higher than thecostof debt, so increasingequityfinancing usually increases WACC. ... Debt financing includes principal, which must be repaid to lenders or bondholders, and interest. While debtdoesnot dilute ownership, interest payments on debt reduce net income and cash flow.

Discussion

No Comment Found

Related InterviewSolutions

Possessive NounsThejacketuniform needs to be washed(Bob)Therattle is pink(baby)
DenlcesRead the tollowing line :Forget the buried woes and dead despairsHere, the repetition of the sounddonant sound in quick succession at the beginning of words is ealledples of this kind that oceur in the poem./fends a musieal quality to the line. Suoh repetifióAlliteraticm', Fick órrLook at the ollowing line :The world won't care about your old defeats're, the word "world' refers to the people in the world. It means one thing refers to tnnected with it. This figure of speech is called 'Metomymy'. For example, "The pen isword'Notice the expression ...strain and stresswe notice that both the words 'strain' and 'stress' convey the same meaninhe same meaning is expressed more than once, using different words, which
(рео a brief character sketch of Peter van Daan.
Q. 1. Draw a brief character-sketch of Anil.
Write a brief character sketch of Mr. Arthur Gilman.
Which of the following is not a possessive pronoun(A) ours (B) mine (C) their (D) yours
what is the meaninof betal in biodh
) What is Book-keeping?
6hatHhe meanincatheueHadl thoes thi har that ho i abho bash
DIETARY FOOD SUPPLEMENTNOT FOR MEDICINAL USE