Which of the Following Statements Is CORRECT

question 4

Multiple Choice

Which of the following statements is CORRECT?

• A) The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.
• B) The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price.
• C) The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.
• D) The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.
• E) As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.

---

Definitions:

Heparin Infusion

A medical treatment involving the slow injection of heparin, an anticoagulant, into the bloodstream to prevent blood clots.

Myocardial Infarction

A medical condition commonly known as a heart attack, resulting from the interruption of blood flow to a part of the heart, causing heart cells to be damaged or die.

Standing Order

A written and approved document containing rules, policies, procedures, regulations, and orders for the conduct of client care in various identified clinical settings.

Insulin Subcutaneously

The method of administering insulin by injection under the skin to manage blood glucose levels in individuals with diabetes.