As a General Rule,the Capital Structure That

question 41

Multiple Choice

As a general rule,the capital structure that

• A) Maximizes expected EPS also maximizes the price per share of common stock.
• B) Minimizes the interest rate on debt also maximizes the expected EPS.
• C) Minimizes the required rate on equity also maximizes the stock price.
• D) Maximizes the price per share of common stock also minimizes the weighted average cost of capital.
• E) None of the above.

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