Which of the Following Statements Is CORRECT

question 21

Multiple Choice

Which of the following statements is CORRECT?

• A) The capital structure that maximizes the stock price is also the capital structure that minimizes the weighted average cost of
• Capital (WACC).
• B) The capital structure that maximizes the stock price is also the
• Capital structure that maximizes earnings per share.
• C) The capital structure that maximizes the stock price is also the capital structure that maximizes the firm's times interest earned
• (TIE) ratio.
• D) 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.
• E) If Congress were to pass legislation that increases the personal tax rate but decreases the corporate tax rate, this would encourage
• Companies to increase their debt ratios.

Understand the fundamental concepts of assignments and delegations in contract law.

Recognize the rights and obligations of third parties in contract assignments.

Identify the requirements and limitations of oral and written assignments.

Comprehend the role of consideration in the effectiveness of an assignment.

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Definitions:

Axial Skeleton

The part of the skeleton that consists of the bones of the head and trunk of a vertebrate.

Tongue

A muscular organ in the mouth that aids in tasting, swallowing, and speech.

Phalangeal Bones

The bones that form the fingers and toes of the human body, divided into proximal, middle, and distal segments.

Interphalangeal Joints

Hinge joints found between the phalanges (bones) of the fingers and toes, allowing for bending and straightening movements.