All else equal, which of the following statement(s) is(are) true? The more debt...
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Finance
All else equal, which of the following statement(s) is(are) true?
The more debt a firm uses, the riskier its equity becomes, which, in turn, causes the value of both the debt and the equity to decrease
All of them are true statements
The lower the cost of capital of a firm, the higher will be its market value
The higher the P/E ratio, the higher the value of the firm will be
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