The cost of debt is normally higher than the cost of equity. Is it a good idea to always carry a debt load as great as possible so that ROE will be higher. Do you agree? Why or why not?

Tirole’s model of moral hazard associated with external financing (whether debt or equity) has nothing to do with risk-taking. Characterize the basis of moral hazard in his model. Then explain the type of rationing that the model predicts.

The key benefits associated with refunding debt are the reduction in the firm's debt ratio and the creation of more reserve borrowing capacity. true or false explain

True/False. The optimal amount of debt produces the highest weighted average cost of capital. Group of answer choices True False

What are the two best arguments favor debt reduction (i.e., the pros)?

it say all answers above are incorrect, i need the yield on the debt percentage plz and thank u

Which of the following is incorrect about debt financing? A. Debt financing always generates excess returns which benefits equity investors b. One benefit of debt financing is that interest on most debt is fixed c. One benefit of debt financing is that interest is a tax deductible expense d. It increases financial leverage

1- What are the consequences of poor internal equity? 2- What are the consequences of poor external equity? 3- How can pay grades help prevent internal equity problems?

The supply and demand for loans will increase when capital becomes more productive.   Select one: True False

How long does it take you to eliminate the debt?