Question: beginning with a zero leverage company, as debt is substituted for equity in the capital structure ______. the overall cost of capital first declines, reaches

beginning with a zero leverage company, as debt is substituted for equity in the capital structure ______.

the overall cost of capital first declines, reaches a minimum, and then rises

the overall cost of capital declines

the overall cost of capital rises

the overall cost of capital first rises, reaches a maximum, and then declin

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