Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 19 of 19
Which statement is false? A. The risk-return profile for equity holders is 100% downside and 100% upside.
B. Higher leverage increases the risks for debt and equity holders.
C. Management generally seeks to maximize equity value and thus may take actions that are unfavorable to debtholders.
User Contributed Comments 0
You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain factors affecting capital structure and the weighted-average cost of capital
CFA® 2024 Level I Curriculum, Volume 2, Module 6.