Beginning with a zeroleverage company as debt is substitute

Reference no: EM13813054

Beginning with a zero-leverage company, as debt is substituted for equity in the capital structure ________.

the overall cost of capital declines
the overall cost of capital first rises, reaches a maximum, and then declines
the overall cost of capital first declines, reaches a minimum, and then rises
the overall cost of capital rises

Reference no: EM13813054

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