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If return on Investment is high, increased use of debt, is likely to ____________ the over-all cost of capital of the firm provided that the cost of e
Question

If return on Investment is high, increased use of debt, is likely to ____________ the over-all cost of capital of the firm provided that the cost of equity remains unaffected.

A.

Reduce

B.

Increase

C.

Double

D.

Maximise

Correct option is A

If return on Investment is high, increased use of debt, is likely to reduce the over-all cost of capital of the firm provided that the cost of equity remains unaffected.

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CUET 2025 English Language Mock 01

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