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​ .

increases; decreases

Explanation:

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

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself

answerembargo;