Trade-offs that are implied in capital structure decision

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Reference no: EM131339740

1. The relationship between an investment opportunity's risk and potential rate of return is inverse (i.e., fluctuates in opposite directions).

1. True

2. False

2. How has changes in capital structure affected the firm’s earnings per share, market value, share price, and cost of capital?

3. What are some of the trade-offs that are implied in the capital structure decision?

Reference no: EM131339740

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