b: higher or lower

c: rise or fall

d: the tax advantage, the risk advantage, or the lower dividend payout ratio

d2: higher than, lower than, equal to

e: higher or lower

e2: decreasing or increasing

the financial manager of a fim determines the chees of cost ofty for a combination of financing After-Tex Cost of Debt Cast of Evity a. Find the optimal capital structure that is, optimal combination of debt and equity financing). Round your answers for the capital structure to the nearest whole number and for the cost of capital to one decim The optimal capital structure: det and equity with a cost of capital of b. Why does the cost of capital initial decline as the m ost es det for equity financing! The cost of capital decine because the most oft en than the cost of equity . Why will the cost of funds eventuale as the form becomes more financially leveraged As the form becomes more financialy leveraged and the cost oft and equity wit and see cost of cottoncrease d. Why is debt financing more common than anong with referred Det financing is more common than financing the preferred to because of which makes the cost of the d a ncing the cost of the preferred stock .. interest were not a tax deductible expense wat effect would have the cost of a interest were tax deduct the cost of t h e the cost of capital The financial manager of a firm determines the following schedules of cost of cost of equity for various combinations of financing Aner Tax Cost of Debt a. Find the optimal capital structure that is, optimal combination of debt and equity financing). Round your answers for the capital structure to the nearest whole number and for the cost of capital to one decima place The optimal c al structure: Seity with a cost of capital of b. Why does the cost of capital initially decline as the firm butitutes debe for equity financing The cost of capital initially declines because the firm cost of debt is than the cost of equity c. Why will the cost of funds eventually rise as the firm becomes more financially leveraged? As the firm becomes more francia leveraged and is the cost of debt and equity will cause the cost of capital to increase d. Why is debt financing more common than financing with preferred stock? Debt financing is more common than financing with preferred stock because of Select which makes the cost of the debt financing the cost of the preferred stock e. If interest were not a tax deductible expense, what effect would that have on the firm's cost of capital? If interest were not a tax deductible, the cost of debt would be the cost of cap