Quiz Ch 13 – T/F Debt Ratio and Risk Perception

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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True or false: Lowering the debt ratio increases the risk of both debt and equity, causing debtholders and equity holders to seek higher returns to mitigate the elevated risk.

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  • Search Terms: ⊚ true ⊚ false a and become both compensate debt debtholders decreases equity equityholders firm for higher if increased its ratio, require return risk. riskier. the to will
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