Q2212
Which of the following is an implicit cost of increasing proportion of debt of a company?
A.
P.E. Ratio of the company would increase
B.
Rate of return of the company would decrease
C.
Tax-shield would not be available on new debts
D.
Equity shareholders would demand higher return
AnswerAnswer: Option D
Solution
Answer: Option D
No explanation is given for this question Let's Discuss on Board