As the volume of financing increases, the costs of the various types of financing will __________,the firm's weighted average cost of capital.
A) decrease, lowering
B) increase, lowering
C) decrease, raising
D) increase, raising

Question

Quizplus · Accepted Answer

As the volume of financing increases, the costs of the various types of financing will generally increase due to higher risk or demand for capital, which raises the firm's weighted average cost of capital.

As the Volume of Financing Increases, the Costs of the Various