A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can

A$)$ increase the proportion of long$-$term debt to decrease the cost of capital.

B$)$ increase short$-$term debt to decrease the cost of capital.

C$)$ decrease the proportion of common stock equity to decrease financial risk.

D$)$ increase the proportion of common stock equity to decrease financial risk.

Answer rating: 100% (QA)

The question presents four different strategies that a corporation could use to decrease its financial risk premium A Increase the proportion of longt... View the full answer