1.If the cost of debt is the lowest among the sources of
financing, would increasing the percentage of debt in the Capital
Structure reduce the Cost of Capital to the firm?
1b. The ratio of Equity to Total Assets is very low in
Banks. Why is that the case?
1c. As a stockholder would you prefer to see your company
declare a 100% stock dividend or a 2-for-1 split? Assume that
either action is feasible.
1.If the cost of debt is the lowest among the sources of financing, would increasing the percentage of debt in the Capit
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