Question: Martin is considering increasing its debt load and is contemplating a 6 0 % debt and 4 0 % common equity mix. If they do

Martin is considering increasing its debt load and is contemplating a 60% debt and 40% common equity mix. If they do this, what should happen to the component cost of debt (not the weighted cost of debt)? Additionally, what should happen to the component cost of equity (not the weighted cost of equity)? Why?

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