Which of the Following Statements Is CORRECT

question 66

Multiple Choice

Which of the following statements is CORRECT?

• A) The capital structure that minimizes a firm's weighted average cost of capital is also the capital structure that maximizes its stock price.
• B) The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
• C) If a firm finds that the cost of debt is less than the cost of equity, increasing its debt ratio must reduce its WACC.
• D) Other things held constant, if corporate tax rates declined, then the Modigliani-Miller tax-adjusted tradeoff theory would suggest that firms should increase their use of debt.
• E) A firm can use retained earnings without paying a flotation cost.Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt.

Recognize the characteristics and implications of being part of the "urban underclass."

Understand Marx's and Weber's theories on social class and stratification.

Identify the factors influencing social mobility in the United States.

Explain the functionalist and conflict theories regarding social inequality and stratification.

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Definitions:

Sales Promotions

Short-term incentives or events designed to increase interest, enhance product demand, or stimulate sales of a product or service.

Imc Channel

The use of various promotional tools in a coordinated manner to reinforce the marketing message in integrated marketing communications.

Coupons Rebates

Incentives offered to consumers as a form of discount on goods or services, where coupons provide immediate reductions and rebates require submission for a refund post-purchase.

Personal Selling

A direct marketing approach involving face-to-face interaction between a salesperson and a customer to present products or services.