How Would an Increase in Debt Affect the Cost of Capital?


When debt increases, the level of equity also rises. This rise in equity causes the purchase of capital to become more expensive. An increase in debt would affect the cost of capital, if the debt has been taken to purchase that capital or to fund its maintenance.
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2015