公司财务智慧树知到课后章节答案2023年下北京第二外国语学院

公司财务智慧树知到课后章节答案2023年下北京第二外国语学院北京第二外国语学院

第一章测试

Whichofthefollowingstatementsistrue?（）

A:Allofthestatementsabovearecorrect.

B:Soleproprietorshipsdonothavetopaycorporatetax.

C:Noneofthestatementsaboveiscorrect.

D:Oneofthebenefitsofincorporatingyourbusinessisthatyoubecomeentitledtoreceiveunlimitedliability.

E:Soleproprietorshipsaresubjecttomoreregulationsthancorporations.

答案:Soleproprietorshipsdonothavetopaycorporatetax.

Whichofthefollowingstatementsismostcorrect?（）

A:Statementsbandcarecorrect.

B:Corporationsfacefewerregulationsthansoleproprietorships.

C:Onedisadvantageofbeingasoleproprietoristhatyouhavetopaycorporatetaxes,eventhoughyoudon’trealizethebenefitsofbeingacorporation.

D:Noneofthestatementsaboveiscorrect.

E:Oneadvantageofformingacorporationisthatyouhavelimitedliability.

答案:Oneadvantageofformingacorporationisthatyouhavelimitedliability.

Whichofthefollowingcouldexplainwhyabusinessmightchoosetoorganizeasacorporationratherthanasasoleproprietorshiporapartnership?（）

A:Corporationsgenerallyfacelowertaxes.

B:Corporationsgenerallyfacefewerregulations.

C:Statementscanddarecorrect.

D:Corporationsgenerallyfinditeasiertoraisecapital.

E:Corporationsenjoyunlimitedliability.

答案:Corporationsgenerallyfinditeasiertoraisecapital.

Theprimarygoalofapublicly-ownedfirminterestedinservingitsstockholdersshouldbeto（）

A:Minimizethechancesoflosses.

B:Maximizethestockpricepershare.

C:MaximizeexpectedEPS.

D:Maximizeexpectedtotalcorporateprofit.

E:Maximizeexpectednetincome.

答案:Maximizethestockpricepershare.

Whichofthefollowingstatementsismostcorrect?（）

A:Compensatingmanagerswithstockcanreducetheagencyproblembetweenstockholdersandmanagers.

B:Thethreatofatakeovercanreducetheagencyproblembetweenbondholdersandstockholders.

C:Allofthestatementsabovearecorrect.

D:Statementsaandbarecorrect.

E:Restrictionsareincludedincreditagreementstoprotectbondholdersfromtheagencyproblemthatexistsbetweenbondholdersandstockholders.

答案:Statementsaandbarecorrect.

第二章测试

Whichofthefollowingstatementsismostcorrect?(Assumethattherisk-freerateremainsconstant.（）

A:Noneofthestatementsaboveiscorrect

B:Ifthemarketriskpremiumincreasesby1percentagepoint,thentherequiredreturnwillincreaseforstocksthathaveabetagreaterthan1.0,butitwilldecreaseforstocksthathaveabetalessthan1.0.

C:Ifthemarketriskpremiumincreasesby1percentagepoint,thentherequiredreturnonallstockswillriseby1percentagepoint.

D:Statementsaandcarecorrect.

E:Ifthemarketriskpremiumincreasesby1percentagepoint,thentherequiredreturnwillincreaseby1percentagepointforastockthathasabetaequalto1.0.

答案:Ifthemarketriskpremiumincreasesby1percentagepoint,thentherequiredreturnwillincreaseby1percentagepointforastockthathasabetaequalto1.0.

Whichofthefollowingstatementsisincorrect?（）

A:Themarketriskpremiumisaffectedbyattitudesaboutrisk.

B:Twosecuritieswiththesamestand-aloneriskcanhavedifferentbetas.

C:Higherbetastockshaveahigherrequiredreturn.

D:Company-specificriskcanbediversifiedaway.

E:Theslopeofthesecuritymarketlineismeasuredbybeta.

答案:Theslopeofthesecuritymarketlineismeasuredbybeta.

Whichofthefollowingstatementsismostcorrect?（）

A:Asecurity’sbetameasuresitsnondiversifiable(systematic,ormarket)riskrelativetothatofanaveragestock.

B:Ifaninvestorbuysenoughstocks,heorshecan,throughdiversification,eliminatevirtuallyallofthenonmarket(orcompany-specific)riskinherentinowningstocks.Indeed,iftheportfoliocontainedallpubliclytradedstocks,itwouldberiskless.

C:Portfoliodiversificationreducesthevariabilityofthereturnsontheindividualstocksheldintheportfolio.

D:Therequiredreturnonafirm’scommonstockisdeterminedbyitssystematic(ormarket)risk.Ifthesystematicriskisknown,andifthatriskisexpectedtoremainconstant,thennootherinformationisrequiredtospecifythefirm’srequiredreturn.

E:Astock’sbetaislessrelevantasameasureofrisktoaninvestorwithawell-diversifiedportfoliothantoaninvestorwhoholdsonlythatonestock.

答案:Asecurity’sbetameasuresitsnondiversifiable(systematic,ormarket)riskrelativetothatofanaveragestock.

StockAandStockBbothhaveanexpectedreturnof10percentandastandarddeviationof25percent.StockAhasabetaof0.8andStockBhasabetaof1.2.Thecorrelationcoefficient,r,betweenthetwostocksis0.6.PortfolioPisaportfoliowith50percentinvestedinStockAand50percentinvestedinStockB.Whichofthefollowingstatementsismostcorrect?（）

A:PortfolioPhasastandarddeviationof25percentandabetaof1.0

B:PortfolioPhasmoremarketriskthanStockAbutlessmarketriskthanStockB

C:PortfolioPhasacoefficientofvariationequalto2.5

D:Allofthestatementsabovearecorrect

E:Noneofthestatementsaboveiscorrect

答案:PortfolioPhasmoremarketriskthanStockAbutlessmarketriskthanStockB

Whichofthefollowingstatementsismostcorrect?（）

A:Ifportfoliosareformedbyrandomlyselectingstocks,a10-stockportfoliowillalwayshavealowerbetathanaone-stockportfolio.

B:Atwo-stockportfoliowillalwayshavealowerstandarddeviationthanaone-stockportfolio.

C:Atwo-stockportfoliowillalwayshavealowerbetathanaone-stockportfolio.

D:Noneofthestatementsaboveiscorrect.

E:Allofthestatementsabovearecorrect.

答案:Noneofthestatementsaboveiscorrect.

第三章测试

Youhavetheopportunitytobuyaperpetuitythatpays$1,000annually.Yourrequiredrateofreturnonthisinvestmentis15percent.Youshouldbeessentiallyindifferenttobuyingornotbuyingtheinvestmentifitwereofferedatapriceof()

A:$6,000.00

B:$5,000.00

C:$8,728.50

D:$7,500.00

E:$6,666.67

答案:$6,666.67

Ifa5-yearordinaryannuityhasapresentvalueof$1,000,andiftheinterestrateis10percent,whatistheamountofeachannuitypayment?()

A:$315.38

B:$346.87

C:$240.42

D:$263.80E:$300.20

答案:$263.80

In1958theaveragetuitionforoneyearatanIvyLeagueschoolwas$1,800.Thirtyyearslater,in1988,theaveragecostwas$13,700.

Whatwasthegrowthrateintuitionoverthe30-yearperiod?()

A:12%

B:6%

C:8%

D:7%

E:9%

答案:6%

Whichofthefollowingsecuritieshasthelargestpresentvalue?Assumeinallcasesthattheannualinterestrateis8percentandthattherearenotaxes.()

A:Apreferredstockissuethatpaysan$800annualdividendinperpetuity.(Assumethatthefirstdividendisreceivedoneyearfromtoday.)

B:Asecuritythatpaysyou$1,000attheendof1year,$2,000attheendof2years,and$3,000attheendof3years.

C:Afive-yearordinaryannuitythatpaysyou$1,000eachyear.

D:Aseven-yearzerocouponbondthathasafacevalueof$8,500.

E:Afive-yearzerocouponbondthathasafacevalueof$7,000.

答案:Apreferredstockissuethatpaysan$800annualdividendinperpetuity.(Assumethatthefirstdividendisreceivedoneyearfromtoday.)

Yourbankaccountpaysanominalinterestrateof6percent,butinterestiscompoundeddaily(ona365-daybasis).Yourplanistodeposit$500intheaccounttoday.Youalsoplantodeposit$1,000intheaccountattheendofeachofthenextthreeyears.Howmuchwillyouhaveintheaccountattheendofthreeyears,aftermakingyourfinaldeposit?()

A:$2,591

B:$3,779

C:$3,788

D:$3,164

E:$3,500

答案:$3,788

第四章测试

A10-yearbondpaysanannualcoupon.Thebondhasayieldtomaturityof8percent.Thebondcurrentlytradesatapremium--itspriceisabovetheparvalueof$1,000.Whichofthefollowingstatementsismostcorrect?()

A:Iftheyieldtomaturityremainsat8percent,thenthebond’spricewillremainthesameoverthenextyear.

B:Iftheyieldtomaturityincreases,thenthebond’spricewillincrease.

C:Thebond’scurrentyieldislessthan8percent.

D:Iftheyieldtomaturityremainsat8percent,thenthebond’spricewilldeclineoverthenextyear.

E:Thebond’scouponrateislessthan8percent.

答案:Iftheyieldtomaturityremainsat8percent,thenthebond’spricewilldeclineoverthenextyear.

YouareconsideringtwoTreasurybonds.BondAhasa9percentannualcoupon,andBondBhasa6percentannualcoupon.Bothbondshaveayieldtomaturityof7percent.Assumethattheyieldtomaturityisexpectedtoremainat7percent.Whichofthefollowingstatementsismostcorrect?()

A:Iftheyieldtomaturityremainsat7percent,thepriceofbothbondswillincreaseovertime,butthepriceofBondAwillincreasebymore.

B:Iftheyieldtomaturityremainsat7percent,thepriceofBondAwilldecreaseovertime,butthepriceofBondBwillincreaseovertime.

C:Iftheyieldtomaturityremainsat7percent,thepriceofBondBwilldecreaseovertime,butthepriceofBondAwillincreaseovertime.

D:Iftheyieldtomaturityremainsat7percent,thepriceofbothbondswillincreaseby7percentperyear.

E:Iftheyieldtomaturityremainsat7percent,thepriceofbothbondswillremainunchanged.

答案:Iftheyieldtomaturityremainsat7percent,thepriceofBondAwilldecreaseovertime,butthepriceofBondBwillincreaseovertime.

Iftheyieldtomaturitydecreased1percentagepoint,whichofthefollowingbondswouldhavethelargestpercentageincreaseinvalue?()

A:A10-yearzerocouponbond.

B:A1-yearbondwithan8percentcoupon.

C:A10-yearbondwithan8percentcoupon.

D:A1-yearzerocouponbond.

E:A10-yearbondwitha12percentcoupon.

答案:A10-yearzerocouponbond.

Whichofthefollowingstatementsismostcorrect?()

A:Noneofthestatementsaboveiscorrect.

B:Ifacouponbondissellingatpar,itscurrentyieldequalsitsyieldtomaturity.

C:Statementsbandcarecorrect.

D:Ifabondissellingforapremium,thisimpliesthatthebond’syieldtomaturityexceedsitscouponrate.

E:Ifratesfallafteritsissue,azerocouponbondcouldtradeforanamountaboveitsparvalue.

答案:Ifacouponbondissellingatpar,itscurrentyieldequalsitsyieldtomaturity.

BondAhasa9percentannualcoupon,whileBondBhasa7percentannualcoupon.Bothbondshavethesamematurity,afacevalueof$1,000,andan8percentyieldtomaturity.Whichofthefollowingstatementsismostcorrect?()

A:Allofthestatementsabovearecorrect.

B:BondAtradesatadiscount,whereasBondBtradesatapremium.

C:Iftheyieldtomaturityforbothbondsimmediatelydecreasesto

6percent,BondA’sbondwillhavealargerpercentageincreaseinvalue.

D:Iftheyieldtomaturityforbothbondsremainsat8percent,BondA’spriceoneyearfromnowwillbehigherthanitistoday,butBondB’spriceoneyearfromnowwillbelowerthanitistoday.

E:Noneofthestatementsaboveiscorrect.

答案:Noneofthestatementsaboveiscorrect.

第五章测试

Iftwoconstantgrowthstockshavethesamerequiredrateofreturnandthesameprice,whichofthefollowingstatementsismostcorrect?()

A:Thestockwiththehigherdividendyieldwillhaveahigherdividendgrowthrate.

B:Thestockwiththehigherdividendyieldwillhavealowerdividendgrowthrate.

C:Thetwostockshavethesamedividendyield.

D:Thetwostockshavethesamedividendgrowthrate.

E:Thetwostockshavethesameper-sharedividend.

答案:Thestockwiththehigherdividendyieldwillhavealowerdividendgrowthrate.

Stocksaandbhavethesameprice,butStockahasahigherrequiredrateofreturnthanStockbWhichofthefollowingstatementsismostcorrect?()

A:StockbmusthaveahigherdividendyieldthanStocka.

B:IfStockahasahigherdividendyieldthanStockB,itsexpectedcapitalgainsyieldmustbelowerthanStockb’s.

C:StockamusthavebothahigherdividendyieldandahighercapitalgainsyieldthanStockb.

D:StockamusthaveahigherdividendyieldthanStockb.

E:IfStockahasalowerdividendyieldthanStockB,itsexpectedcapitalgainsyieldmustbehigherthanStockb’s.

答案:IfStockahasalowerdividendyieldthanStockB,itsexpectedcapitalgainsyieldmustbehigherthanStockb’s.

Whichofthefollowingstatementsismostcorrect?()

A:Statementsaandbarecorrect.

B:AnimplicationofthesemistrongformoftheefficientmarketshypothesisisthatyoucannotconsistentlybenefitfromtradingoninformationreportedinTheWallStreetJournal.

C:Marketefficiencysaysthattheactualrealizedreturnsonallstockswillbeequaltotheexpectedratesofreturn.

D:Ifastock’sbetaincreasedbutitsgrowthrateremainedthesame,thenthenewequilibriumpriceofthestockwillbehigher(assumingdividendscontinuetogrowattheconstantgrowthrate).

E:Allofthestatementsabovearecorrect.

答案:AnimplicationofthesemistrongformoftheefficientmarketshypothesisisthatyoucannotconsistentlybenefitfromtradingoninformationreportedinTheWallStreetJournal.

Whichofthefollowingstatementsisfalse?()

A:Whenstockinacloselyheldcorporationisofferedtothepublicforthefirsttimethetransactioniscalled“goingpublic”andthemarketforsuchstockiscalledthenewissuemarket.

B:Goingpublicestablishesatruemarketvalueforthefirmandensuresthataliquidmarketwillalwaysexistforthefirm’sshares.

C:Apubliclyownedcorporationissimplyacompanywhosesharesareheldbytheinvestingpublic,whichmayincludeothercorporationsandinstitutionsaswellasindividuals.

D:Itispossibleforafirmtogopublic,andyetnotraiseanyadditionalnewcapital.

E:Whenacorporation’ssharesareownedbyafewindividualswhoareassociatedwithorarethefirm’smanagement,wesaythatthefirmis“closelyheld.”

答案:Goingpublicestablishesatruemarketvalueforthefirmandensuresthataliquidmarketwillalwaysexistforthefirm’sshares.

TheJonesCompanyhasdecidedtoundertakealargeproject.Consequently,thereisaneedforadditionalfunds.Thefinancialmanagerplanstoissuepreferredstockwithaperpetualannualdividendof$5pershareandaparvalueof$30.Iftherequiredreturnonthisstockiscurrently20percent,whatshouldbethestock’smarketvalue?()

A:$25

B:$50

C:$10

D:$100

E:$150

答案:$25

第六章测试

Whichofthefollowingstatementsiscorrect?()

A:Noneofthestatementsaboveiscorrect.

B:Althoughsomemethodsofestimatingthecostofequitycapitalencounterseveredifficulties,theCAPMisasimpleandreliablemodelthatprovidesgreataccuracyandconsistencyinestimatingthecostofequitycapital.

C:TheDCFmodelispreferredoverothermodelstoestimatethecostofequitybecauseoftheeasewithwhichafirm’sgrowthrateisobtained.

D:Depreciation-generatedfundsareanadditionalsourceofcapitaland,infact,representthelargestsinglesourceoffundsforsomefirms.

E:Thebond-yield-plus-risk-premiumapproachtoestimatingthecostofequityisnotalwaysaccuratebutitsadvantagesarethatitisastandardizedandobjectivemodel.

答案:Depreciation-generatedfundsareanadditionalsourceofcapitaland,infact,representthelargestsinglesourceoffundsforsomefirms.

InapplyingtheCAPMtoestimatethecostofequitycapital,whichofthefollowingelementsisnotsubjecttodisputeorcontroversy?()

A:Therisk-freerate,kRF

B:Thestock’sbetacoefficient,bi

C:Themarketriskpremium(RPM)

D:Theexpectedrateofreturnonthemarket,kM

E:Alloftheabovearesubjecttodispute

答案:Alloftheabovearesubjecttodispute

Whichofthefollowingstatementsismostcorrect?()

A:Theweightedaveragecostofcapitaliscalculatedonabefore-taxbasis.

B:Allofthestatementsabovearecorrect.

C:Theweightedaveragecostofcapitalforagivencapitalbudgetlevelisaweightedaverageofthemarginalcostofeachrelevantcapitalcomponentthatmakesupthefirm’stargetcapitalstructure.

D:Statementsaandcarecorrect.

E:Anincreaseintherisk-freerateisnotlikelytoincreasethemarginalcostsofbothdebtandequityfinancing.

答案:Theweightedaveragecostofcapitalforagivencapitalbudgetlevelisaweightedaverageofthemarginalcostofeachrelevantcapitalcomponentthatmakesupthefirm’stargetcapitalstructure.

Whichofthefollowingstatementsismostcorrect?()

A:Noneofthestatementsaboveiscorrect.

B:Statementsaandbarecorrect.

C:Allelseequal,anincreaseinflotationcostswillincreasethecostofretainedearnings.

D:Whencalculatingtheweightedaveragecostofcapital,firmsshouldrelyonhistoricalcostsratherthanmarginalcostsofcapital.

E:Sincestockholdersdonotgenerallypaycorporatetaxes,corporationsshouldfocusonbefore-taxcashflowswhencalculatingtheweightedaveragecostofcapital(WACC).

答案:Noneofthestatementsaboveiscorrect.

AllisonEnginesCorporationhasestablishedatargetcapitalstructureof40percentdebtand60percentcommonequity.Thecurrentmarketpriceofthefirm’sstockisP0=$28;itslastdividendwasD0=$2.20,anditsexpecteddividendgrowthrateis6percent.WhatwillAllison’smarginalcostofretainedearnings,ks,be?()

A:15.8%

B:13.9%

C:14.3%

D:7.9%

E:9.7%

答案:9.7%

第七章测试

Assumethatyouarecomparingtwomutuallyexclusiveprojects.Whichofthefollowingstatementsismostcorrect?()

A:Allofthestatementsabovearecorrect.

B:Therewillbeameaningful(asopposedtoirrelevant)conflictonlyiftheprojects’NPVprofilescross,andeventhen,onlyifthecostofcapitalistotheleftof(orlowerthan)thediscountrateatwhichthecrossoveroccurs.

C:Noneofthestatementsaboveiscorrect.

D:IfaconflictexistsbetweentheNPVandtheIRR,theconflictcanalwaysbeeliminatedbydroppingtheIRRandreplacingitwiththeMIRR.

E:TheNPVandIRRruleswillalwaysleadtothesamedecisionunlessoneorbothoftheprojectsare“non-normal”inthesenseofhavingonlyonechangeofsigninthecashflowstream,thatis,oneormoreinitialcashoutflows(theinvestment)followedbyaseriesofcashinflows.

答案:Therewillbeameaningful(asopposedtoirrelevant)conflictonlyiftheprojects’NPVprofilescross,andeventhen,onlyifthecostofcapitalistotheleftof(orlowerthan)thediscountrateatwhichthecrossoveroccurs.

Whichofthefollowingstatementsisincorrect?()

A:IfthemultipleIRRproblemdoesnotexist,anyindependentprojectacceptablebytheNPVmethodwillalsobeacceptablebytheIRRmethod.

B:NPVcanbenegativeiftheIRRispositive.

C:IfIRR=k(thecostofcapital),thenNPV=0.

D:Assumingaprojecthasnormalcashflows,theNPVwillbepositiveiftheIRRislessthanthecostofcapital.

E:TheNPVmethodisnotaffectedbythemultipleIRRproblem.

答案:Assumingaprojecthasnormalcashflows,theNPVwillbepositiveiftheIRRislessthanthecostofcapital.

ProjectJhasthesameinternalrateofreturnasProjectK.Whichofthefollowingstatementsismostcorrect?()

A:Noneofthestatementsaboveiscorrect.

B:Allofthestatementsabovearecorrect.

C:Ifthetwoprojectshavethesamesize(scale)theywillhavethesamediscountedpayback,evenifthetwoprojectshavedifferentlevelsofrisk.

D:IfthetwoprojectshavethesamerisktheywillhavethesameNPV,evenifthetwoprojectsareofdifferentsize.

E:Iftheprojectshavethesamesize(scale)theywillhavethesameNPV,evenifthetwoprojectshavedifferentlevelsofrisk.

答案:Noneofthestatementsaboveiscorrect.

ProjectXhasaninternalrateofreturnof20percent.ProjectYhasaninternalrateofreturnof15percent.Bothprojectshaveapositivenetpresentvalue.Whichofthefollowingstatementsismostcorrect?()

A:ProjectXmusthaveahighernetpresentvaluethanProjectY.

B:Noneofthestatementsaboveiscorrect.

C:IfthetwoprojectshavethesameWACC,ProjectXmusthaveahighernetpresentvalue.

D:Statementsbandcarecorrect.

E:ProjectXmusthaveashorterpaybackthanProjectY.

答案:Noneofthestatementsaboveiscorrect.

Acapitalinvestment’sinternalrateofreturn()

A:Changeswhenthecostofcapitalchanges.

B:Isequaltotheannualnetcashflowsdividedbyonehalfoftheproject’scostwhenthecashflowsareanannuity.

C:Issimilartotheyieldtomaturityonabond.

D:Mustexceedthecostofcapitalinorderforthefirmtoaccepttheinvestment.

E:Statementscanddarecorrect.

答案:Statementscanddarecorrect.

第八章测试

Whichofthefollowingstatementsismostcorrect?()

A:Whenacompanyincreasesitsdebtratio,thecostsofequityanddebtcapitalbothincrease.Therefore,theweightedaveragecostofcapital(WACC)mustalsoincrease.B:Thecapitalstructurethatmaximizesstockpriceisgenerallythecapitalstructurethatalsomaximizesearningspershare.

C:Allelseequal,anincreaseinthecorporatetaxratewouldtendtoencourageacompanytoincreaseitsdebtratio.

D:Statementsaandcarecorrect.

E:Statementsaandbarecorrect.

答案:Thecapitalstructurethatmaximizesstockpriceisgenerallythecapitalstructurethatalsomaximizesearningspershare.

Whichofthefollowingstatementsaboutcapitalstructuretheoryismostcorrect?()

A:Signalingtheorysuggestsfirmsshouldinnormaltimesmaintainreserveborrowingcapacitythatcanbeusedifanespeciallygoodinvestmentopportunitycomesalong.

B:Statementsaandcarecorrect.

C:Allofthestatementsabovearecorrect.

D:Accordingtothe“trade-offtheory,”anincreaseinthecostsofbankruptcywouldleadfirmstoreducetheamountofdebtintheircapitalstructures.

E:Ingeneral,anincreaseinthecorporatetaxratewouldcausefirmstouselessdebtintheircapitalstructures.

答案:Statementsaandcarecorrect.

Asageneralrule,thecapitalstructurethat()

A:Maximizesthepricepershareofcommonstockalsominimizestheweightedaveragecostofcapital.

B:MinimizestheinterestrateondebtalsomaximizestheexpectedEPS.

C:Noneofthestatementsaboveiscorrect.

D:Minimizestherequiredrateonequityalsomaximizesthestockprice.

E:MaximizesexpectedEPSalsomaximizesthepricepershareofcommonstock.

答案:Maximizesthepricepershareofcommonstockalsominimizestheweightedaveragecostofcapital.

Whichofthefollowingstatementsismostcorrect?()

A:Firmswithahighoperatingleveragearemorelikelytorelyondebtfinancing.

B:Firmswithlargetaxlosscarryforwardsaremorelikelytorelyondebtfinancing.

C:Noneofthestatementsaboveiscorrect.

D:Firmswhosesalesareverysensitivetochangesinthebusinesscyclearemorelikelytorelyondebtfinancing.

E:Statementsaandcarecorrect.

答案:Noneofthestatementsaboveiscorrect.

Whichofthefollowingstatementsismostcorrect?()

A:Increasingtheamountofdebtinafirm’scapitalstructureislikelytoincreasethecostsofbothdebtandequityf