Which will raise the cost of borrowing

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Reference no: EM133615890

Problem: You are employed at Home Depot. In the past, the idea of changing Home Depot's capital structure stirred some conversations among top executives. The CFO and other top managers in the finance division are all aware that increasing the debt load will have ramifications in the credit markets. Specifically, they realize that the firm's debt rating could change, which will raise the cost of borrowing as well as possibly lower the value of the existing debt.

Reference no: EM133615890

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