Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A)In general, a firm with low operating leverage also has a small proportion of its total costs in the form of fixed costs.
• B)There is no reason to think that changes in the personal tax rate would affect firms' capital structure decisions.
• C)A firm with high business risk is more likely to increase its use of financial leverage than a firm with low business risk, assuming all else is equal.
• D)If a firm's after-tax cost of equity exceeds its after-tax cost of debt, it can always reduce its WACC by increasing its use of debt.

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Definitions:

Socially Conscientious

Having an awareness of and concern for the problems and injustices of society.

Cyberdeviance

Actions that involve deviant behavior or activities conducted through digital platforms or the internet.

Computer Network

A set of interconnected digital devices that can share resources, data, and applications among users or systems.

Cyberterrorists

Individuals or groups that use online means to carry out acts of terror, often targeting critical infrastructure or spreading fear.