When debt increases as a percentage of total investment, the value of the firm:
A. increases at a decreasing rate.
B. decreases at an accelerated rate.
C. increases at an accelerated rate.
D. decreases at a decreasing rate.
Answer: A
When debt increases as a percentage of total investment, the value of the firm:
A. increases at a decreasing rate.
B. decreases at an accelerated rate.
C. increases at an accelerated rate.
D. decreases at a decreasing rate.