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FIN 6160 CMU How Debt Affect Capital Structure and Equities Discussion

by | Mar 18, 2023 | Uncategorized | 0 comments

  

Description

Do you think increasing proportion of debt in capital structure is going to increase cost of equity? Is it going to increase cost of debt? explain.
Many factor influence cost of capital of a company, how much it costs to borrow or issue shares. The question we pick here is whether the cost of debt and cost of equity are impacted by the amount of debt a company has.

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