The amount of debt increases in firms capital structure

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Reference no: EM13941546

In the traditional approach to capital structure, as the amount of debt increases in a firm's capital structure,

a. equity cost is unaffected.

b. debt becomes less risky.

c. the cost of equity rises faster than the cost of debt.

d. the cost of debt rises faster than the cost of equity.

Reference no: EM13941546

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