This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A corporation has concluded that its financial risk premium is too high. In order to decrease this, ... (Read 49 times)

jayhills49

  • Hero Member
  • *****
  • Posts: 559
on: Jul 11, 2018
A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can ________.
 
  A) increase the proportion of long-term debt to decrease the cost of capital
  B) increase the proportion of short-term debt to decrease the cost of capital
  C) decrease the proportion of common stock equity to decrease financial risk
  D) increase the proportion of common stock equity to decrease financial risk

Question 2

The cost of retained earnings is ________.
 
  A) less than the cost of debt
  B) equal to the cost of a new issue of common stock
  C) equal to the cost of common stock equity
  D) irrelevant to the investment/financing decision


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

firehawk60

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

C


jayhills49

  • Member
  • Posts: 559
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

A1C Levels Predict Risk of Complications A1C Levels Predict Risk of Complications
Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
Effects of Low and High Doses of Apomorphine Effects of Low and High Doses of Apomorphine
a) Avoid placing the face cradle too high because it hyperextends and strains the neck. b) When the ... a) Avoid placing the face cradle too high because it hyperextends and strains the neck. b) When the ...
Client files are kept in alphabetical order in locked file cabinets. Client files are kept in alphabetical order in locked file cabinets.
Afterload is the pressure that the ventricles must overcome in order to open the aortic and pulmonic Afterload is the pressure that the ventricles must overcome in order to open the aortic and pulmonic
Video: Spermatogenesis Animation

For a complete list of videos, visit our video library