Quiz Ch 16 – Impact of Decreasing Debt-Equity Ratio on Risky Debt

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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What happens when the debt-equity ratio decreases in the presence of non-risk-free debt?

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  • Search Terms: a) a as assets debt debt-equity debtholders decreases equity expected free: higher increases. increases. d) is lower not on ratio require return return. b) return. c) risk the when
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