With risky debt and MM's Proposition II,the expected return on assets _____ as the debt-equity ratio _____.
A) increases; increases
B) decreases; increases
C) increases; decreases
D) remains constant; increases

Question

Quizplus · Accepted Answer

The Answer of With risky debt and MM's Proposition II,the expected return on assets _____ as the debt-equity ratio _____.
A) increases; increases
B) decreases; increases
C) increases; decreases
D) remains constant; increases

With Risky Debt and MM's Proposition II,the Expected Return on Assets