When the credit worthiness of company improves, e,g, the credit rating goes up from BB to AA,
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Question:
When the credit worthiness of company improves, e,g, the credit rating goes up from BB to AA, what is the impact on cost of debtand the flow on impact upon WACC, holding all else equal?
a.Kdgoes up, WACC goes down
b.Kdgoes up, WACC goes up
c.Kdgoes down, WACC goes up
d.Kdgoes down, WACC goes down
e.Kdand WACC remain unchanges
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