Question
In: Finance
True or False: A Firm's capital structure has no impact on the firm's weighted average cost...
True or False: A Firm's capital structure has no impact on the firm's weighted average cost of capital
Solutions
Expert Solution
Answer : False.
Reason :
Weighted Average Cost of Capital is calculated by taking the cost of variors sources of finance proportionetly in weights of their capital structure.Therfore A Firm's capital structure impacts firm's weighted average cost of capital.
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B. decrease
C. remain unchanged
D. collapse
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