2B4A WHICH OF THE FOLLOWING, WHEN CONSIDERED INDIVIDUALLY, WOULD GENE...
128.
COS: 2B4a
LOS: 2B4a
Which of the following, when considered individually, would generally have the effect of
increasing a firm’s cost of capital?
I.
The firm reduces its operating leverage.
II.
The corporate tax rate is increased.
III.
The firm pays off its only outstanding debt.
IV.
The Treasury Bond yield increases.
a.
I and III.
b.
II and IV.
c.
III and IV.
d.
I, III and IV.