Which of the Following Statements Is Correct

question 53

Multiple Choice

Which of the following statements is correct?

• A)The capital structure that maximizes the common share price is also the capital structure that minimizes the WACC.
• B)The capital structure that maximizes the common share price is also the capital structure that maximizes earnings per share.
• C)Increasing a company's debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the company's WACC.
• D)Increasing personal tax rate but decreasing corporate tax rate would encourage companies to increase their debt ratios.

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Definitions:

Diagnostic Labels

Terms used by professionals to classify and describe symptoms and behaviors into specific mental health disorders.

Normalizing

A therapeutic technique aimed at reassuring clients that their thoughts, feelings, or behaviors are common or understandable within a particular context, reducing feelings of isolation or abnormality.

Multicultural Counseling

A counseling approach that recognizes and addresses the diverse cultural backgrounds of clients, including ethnicity, race, religion, and social status.

Irrational Emotion

An emotion that doesn't logically align with the current situation or facts at hand.