For most firms, the cost of capital decreases to a low point as the firm debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt .

In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in

evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most firms, the cost of capital decreases to a low point as the firm increases debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt decreases

For most​ firms, the cost of capital decreases to a low point as the firm​ ________ debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ ________.

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For most firms, the cost of capital decreases to a low point as the firm debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt .