Business

Although debt financing is usually the cheapest component of capital, it cannot be used to excess because


Please note that we don't do students' homework for them. Once you have come up with a response to these questions, please re-post and let us know what you think. Then someone here will be happy to critique your work.

=)


Although debt financing is usually the cheapest component of capital, it cannot be used to excess because

  1. 👍 0
  2. 👎 0
  3. 👁 83
asked by Chuck

Respond to this Question

First Name

Your Response

Similar Questions

  1. finance

    13. Although debt financing is usually the cheapest component of capital, it cannot be used to excess because interest rates may change. the firm's stock price will increase and raise the cost of equity financing. the financial

    asked by lashay on July 24, 2008
  2. Paine College

    Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. Its tax-exempt debt currently requries an interst rate of 6.2 percent and its target capital structure calls for 60 percent debt

    asked by Lisa on August 10, 2010
  3. Finance

    Byron Corporation's target capital structure consists of 40% debt and 60% common equity. Assume that the firm has no retained earnings. The company's the last dividend (Do) was $2.00, which is expected to grow at a constant rate

    asked by Anonymous on April 13, 2012
  4. Can some one check my finance answers please

    Which of the following best states the difference between seed capital and startup capital? Seed capital is for research and planning while startup capital is for operating expenses. Seed capital is provided by venture capitalists

    asked by Ed on November 12, 2014
  5. Finance

    Which of the following best states the difference between seed capital and startup capital? Seed capital is for research and planning while startup capital is for operating expenses. Seed capital is provided by venture capitalists

    asked by Ed on November 12, 2014
  6. Finance

    Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value.

    asked by Osoro on November 2, 2014
  7. Finance

    Caustic Chemicals management identified the following cash flows as significant in their year end meeting with analysts: During the year Caustic repaid existing debt of $250,818 and raised additional debt capital of $693,120. It

    asked by Anonymous on March 12, 2013
  8. Economics

    what two methods can a less developed country use to finance its economic development? A.internal financing & debt rescheduling B.Interal financing & foreign investment C.Foreign investment & debt rescheduling D.Infrastructure &

    asked by MM on March 28, 2012
  9. finance

    Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a

    asked by jim on January 27, 2014
  10. Financial Management

    Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a

    asked by Mimosa on December 21, 2012

More Similar Questions