Dino Co has recently issued some debentures to raise new funding. Immediately after the issue Dino Co’s weighted average cost of capital increased. With which theory/theories is this compatible?
A.
Modigliani and Miller (with tax) and Traditional theory.
B.
Modigliani and Miller (without tax) and Traditional theory.
C.
Modigliani and Miller (with tax) and Modigliani and Miller (without tax).