Which One of the Following Statements Is Correct Concerning Capital

question 15

Multiple Choice

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

• A)The issuance of additional shares of ordinary shares will increase the weight of the preferred shares.
• B)An increase in the debt-equity ratio will increase the weight of the ordinary shares.
• C)Target rates are less relevant to a project than historical rates are.
• D)The repurchase of preferred shares will increase the weight of debt.
• E)The weights are unaffected when a bond issue matures.

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