Which of the Following Statements Is CORRECT

question 68

Multiple Choice

Which of the following statements is CORRECT?

• A) As a rule,the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.
• B) The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.
• C) The optimal capital structure minimizes the cost of equity,which is a necessary condition for maximizing the stock price.
• D) The optimal capital structure simultaneously minimizes the cost of debt,the cost of equity,and the WACC.
• E) The optimal capital structure simultaneously maximizes the stock price and minimizes the WACC.

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Definitions:

Promotional Activities

All the actions that a company takes to increase awareness of its products or services, which can include advertising, sales promotion, public relations, and direct marketing.

Global Citizenship

The recognition of belonging to a worldwide community and understanding the responsibilities and roles within it, focusing on cooperation and interdependence.

Bring-it-on Attitude

A confident or fearless approach toward facing challenges, difficulties, or adversities.

Mantra

A repeated phrase or slogan, often used in marketing to encapsulate and communicate a fundamental principle or idea of a brand.