Question:
Volatility or Blank______ increases for equity holders when leverage increases. Multiple choice question. inevitability certainty yield-to-maturity
Posted By Admin @ September 03, 2022
Volatility or Blank______ increases for equity holders when leverage increases. Multiple choice question. inevitability certainty yield-to-maturity
The factors that increase for equity holders when the amount of leverage increases is d. risk.
When there is an increase in the leverage that a company holds, the worry that the company will not be able to pay off the debt also increases.
This leads to more risk and volatility in company stock which would be felt by equity holders.
Remaining part of question:
a. inevitability.
b. certainty.
c. yield-to-maturity
d. risk.
Find out more on the effects of risk on stock at brainly.com/question/11645484.
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