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:

Females

Refers to the sex that can bear offspring or produce eggs, distinguished biologically by the production of gametes (ova), which can be fertilized by male gametes.

Sympathetic Division

A part of the autonomic nervous system that stimulates the body's fight or flight response.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the smooth muscles and heart and glands, regulating functions like heart rate and digestion.

Parasympathetic Division

A branch of the autonomic nervous system responsible for conserving energy and promoting a state of relaxation, often referred to as the "rest and digest" state.