Business Studies, asked by arshdeepsingh8910, 6 months ago

explain how the cost of debt and the cost of equity affect choice of capital structure​

Answers

Answered by rohitsinghyou
3

Answer:

If the debt capital is utilised more, it will increase the cost of the equity capital. The simple reason for this is that the greater use of debt capital increases the risk of the equity shareholders. Therefore, the use of the debt capital can be made only to a limited level

Explanation:

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