Debt to Equity Ratios
Not what you're looking for?
Why does the cost of equity increase with an increased use of debt in the capital structure?
Purchase this Solution
Solution Summary
The solution discusses why the cost of equity increases with an increased use of debt in the capital structure.
Solution Preview
When we look at total cost of equity, we're looking at the risk of ownership in a company. The cost of equity shows investors how risky it is to invest in the company, and includes the cost of ownership in the company. As the company incurs more and more debt, the risk associated with ownership in the company also increases. Basically, the more ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Lean your Process
This quiz will help you understand the basic concepts of Lean.