Which of the Following Statements Is Most Correct

question 25

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 non-callable 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 shares price will increase the marginal cost of retained earnings.
• C) All else equal, an increase in a company's share price will increase the marginal cost of issuing new ordinary equity.
• D) Answers a and b are both correct.
• E) Answers b and c are both correct.

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Intelligence Quotient, a standardized score meant to measure human intelligence, derived from various tests assessing cognitive abilities.

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