Financed only by debt and common stock

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Reference no: EM131532398

A company (financed only by debt and common stock) changes its capital structure from 20% Debt to Assets to 80% Debt to Assets. Which of the following scenarios is most likely?

Cost of Debt Increases, Cost of Equity Decreases, and WACC Decreases.

Cost of Debt Increases, Cost of Equity Decreases, and WACC Increases.

Cost of Debt Decreases, Cost of Equity Increases, and WACC Decreases.

Cost of Debt Decreases, Cost of Equity Decreases, and WACC Decreases.

Cost of Debt Increases, Cost of Equity Increases, and WACC Decreases.

Reference no: EM131532398

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