Thursday, May 6th, 2010

Assume risk-free rate increases. What impact would this have on the cost of debt? What impact would it have on

risk debt
Debra F asked:


Assume risk-free rate increases. What impact would this have on the cost of debt? What impact would it have on the cost of equity?

One Response to “Assume risk-free rate increases. What impact would this have on the cost of debt? What impact would it have on”

jnhighland Says:

as the risk free rate increases (t-bills) the cost of debt increases and stocks go down

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