Which One of the Following Statements Concerning Capital Structure Weights

question 45

Multiple Choice

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

• A)Target capital structure rates for a firm are irrelevant to individual projects.
• 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 both the common and preferred stock.

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Definitions:

RPM

Revolutions per minute, a unit of rotational speed or angular velocity.

Multispeed Fan Motors

Motors designed to operate at various speeds to control the airflow rate for different cooling or ventilation requirements.

Run Winding

The winding of a split-phase motor that remains energized during operation.

Resistors

Electronic components designed to introduce a specific amount of resistance to an electrical current, used in circuits to manage current flow.