When a Firm Alters Its Capital Structure to Include More

question 18

Multiple Choice

When a firm alters its capital structure to include more or less debt (and, in turn, less or more equity) , it impacts which of the following?

• A) the residual cash flows available for stockholders
• B) the number of shares of stock outstanding
• C) the earnings per share (EPS)
• D) all of these choices are correct.

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Definitions:

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Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

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