Which One of the Following Statements Is Correct Concerning Capital

question 62

Multiple Choice

Which one of the following statements is correct concerning capital structure weights?

• A)Target rates are less relevant to a project than are historical rates.
• B)The weights are unaffected when a bond issue matures.
• C)An increase in the debt-equity ratio will increase the weight of the common stock.
• D)The repurchase of preferred stock will increase the weight of debt.
• E)The issuance of additional shares of common stock will increase the weight of the preferred stock.

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Definitions:

Competitive

Characterized by a desire to win or be more successful than others, often involving rivalry and a drive to excel or achieve superiority.

One-way Assistance

A type of help or support that flows from one party to another without expectation of reciprocation or exchange.

Momentary Playmates

Individuals, typically children, who engage in spontaneous, short-term play or interaction without the expectation of a lasting relationship or ongoing connection.