Which of the Following Statements Is Most Correct

question 18

Multiple Choice

Which of the following statements is most correct?

• A) The optimal capital structure minimises the WACC.
• B) If the after-tax cost of equity financing exceeds the after-tax cost of debt financing, firms are always able to reduce their WACC by increasing the amount of debt in their capital structure.
• C) Increasing the amount of debt in a firm's capital structure is likely to increase the cost of both debt and equity financing.
• D) Answers a and c are both correct.
• E) Answers b and c are both correct.

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Definitions:

Patriarchy

A societal organization characterized by male predominance in wielding key authority, leading politically, having moral influence, possessing social benefits, and controlling assets.

Feminist Theory

An extension of feminism into theoretical or philosophical discourse, aiming to understand the nature of gender inequality.

Gender

A social construct that refers to roles, behaviors, activities, and attributes that a society considers appropriate for men and women.

Second Shift

The phenomenon where working individuals, often women, undertake domestic labor and childcare duties after their primary paid employment.