When company changes its capital structure

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Reference no: EM131308090

When a company changes its capital structure, what happens?

I. The Weighted Average Cost of Captial (WACC) changes

II. The discount rate does not change

III. Investors buy or sell shares

IV. Investors perceive the firm as having more risk

A. I, II, III

B. II, III, IV

C. I, III, IV

D. I, II, IV

Reference no: EM131308090

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