increase in cost of debt
increase capital structure
decrease in cost of debt
decrease capital structure
✅ The correct answer is A.
In weighted average cost of capital, rising in interest rate leads to increase in cost of debt. Cost of debt is one part of a company’s capital structure, which also includes the cost of equity.
In weighted average cost of capital, rising in interest rate leads to increase in cost of debt. Cost of debt is one part of a company’s capital structure, which also includes the cost of equity.