Optimal Capital Structure "First" Criteria Suggests That the Impact on EPS

question 21

Multiple Choice

Optimal capital structure "first" criteria suggests that the impact on EPS should be ________ and that the best way to obtain that is with ________ levels of debt and ________ levels of equity.

• A)high; low; high
• B)low; high; low
• C)high; high; low
• D)low; low; high

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Definitions:

Guard Cells

Specialized cells that surround the stomata in plant leaves and control their opening and closing for gas exchange.

Transpiration

The process by which water is absorbed by plant roots, moves through plants, and evaporates from aerial parts, like leaves, stems, and flowers.

Stomata

Microscopic openings on the surfaces of leaves and stems that regulate gas exchange, including water vapor release and carbon dioxide uptake for photosynthesis.

Modified Leaves

Leaves that have evolved to perform functions other than photosynthesis, such as protection, storage, or reproduction.