Which of the Following Statements Is Most Correct

question 84

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 noncallable 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 stock price will increase the marginal cost of retained earnings.
• C) All else equal,an increase in a company's stock price will increase the marginal cost of issuing new common equity.
• D) Answers a and b are both correct.
• E) Answers b and c are both correct.

---

Definitions:

Reactive

Demonstrating a response to a stimulus or situation, often after the fact or as a result of external forces.

Bullying

Aggressive behavior intended to harm or intimidate others, where there is a power imbalance.

Relational Aggression

A type of aggression in which harm is caused through manipulation or damage to relationships or social status.

Bullying

The act of repeatedly subjecting someone to aggressive behavior, abuse, or intimidation, intended to harm, control, or discomfort the victim.