Question: 0 7 . Although debt financing is usually the cheapest component of capital, it cannot be used to excess because Select one: a . interest

07. Although debt financing is usually the cheapest component of capital, it cannot be used to excess because
Select one:
a.
interest rates may change.
b.
the firm's share price will increase and raise the cost of equity financing.
c.
the financial risk of the firm may increase and thus drive up the cost of all sources of financing.
d.
underwriting costs may change.

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