Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) "Business risk" is differentiated from "financial risk" by the fact that financial risk reflects only the use of debt,while business risk reflects both the use of debt and such factors as sales variability,cost variability,and operating leverage.
• B) If corporate tax rates were decreased while other things were held constant,and if the Modigliani-Miller tradeoff theory of capital structure were correct,then corporations should tend to increase their use of debt.
• C) If corporate tax rates were decreased while other things were held constant,and if the Modigliani-Miller tradeoff theory of capital structure were correct,then corporations should tend to decrease their use of debt.
• D) The optimal capital structure is the one which (1)maximizes the price of the firm's stock, (2)minimizes its WACC,and (3)maximizes its EPS.
• E) Statements b and d are both correct.

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Definitions:

Antigen-Presenting Cells

Cells that process and present antigens to T-cells to initiate an immune response.

Major Histocompatibility Complex

Major Histocompatibility Complex is a set of genes that code for proteins on the cell surface, which help the immune system recognize foreign substances.

Dendritic Cells

Immune cells that process antigen material and present it on their surface to T-cells, initiating an immune response.

Macrophages

Macrophages are essential cells within the immune system, responsible for detecting, engulfing, and destroying pathogens and dead cells through the process of phagocytosis.