Which of the Following Statements Is Most Correct

question 6

Multiple Choice

Which of the following statements is most correct?

• A) If a company's tax rate increases but the yield to maturity of its noncallable bonds remains the same, the company's marginal cost of debt capital used to calculate its weighted average cost of capital will fall.
• B) All else equal, an increase in a company's stock price will increase the marginal cost of common stock, rs.
• C) All else equal, an increase in interest rates will decrease the marginal cost of common stock, rs.
• D) Answers a and b are correct.
• E) Answers b and c are correct.

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Definitions:

Diathermy

A medical and surgical technique involving the use of high-frequency electric currents to heat deep muscular tissues, reducing pain and improving circulation.

Therm

A unit of heat energy, equivalent to 100,000 British thermal units (BTUs), used mainly for heating.

Hemopoiesis

The production of all types of blood cells in the bone marrow, including red blood cells, white blood cells, and platelets.

Muscular System

The biological system that comprises of all the muscles in the body and enables movement, both voluntary and involuntary, as well as posture maintenance.