When a company changes its capital structure what happens


When a company changes its capital structure, what happens?

I. The Weighted Average Cost of Captial (WACC) changes

II. The discount rate does not change

III. Investors buy or sell shares

IV. Investors perceive the firm as having more risk

A.   I, II, III

B.   II, III, IV

C.   I, III, IV

 

D.   I, II, IV

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Financial Management: When a company changes its capital structure what happens
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