Refer to the accompanying figure. Assume the slopes of the two demand curves are the same. Let eA denote the price elasticity of demand at point A, and let eB denote the price elasticity of demand at point B. 
Which of the following statements is correct?
Definitions:
Debt-to-assets Ratio
A solvency ratio that indicates the percentage of a company's assets financed by debt.
Cost of Equity
The return that a company must earn on the equity-financed portion of its investments to compensate its shareholders for assuming the risk of the investment.
Dividend Growth Rate
The dividend growth rate is a financial metric that measures the annualized percentage rate of growth of a company's dividend payments to its shareholders.
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