This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 285 times)

jmoore1989

  • Full Member
  • ***
  • Posts: 139
Which of the following statements is correct?

A firm can use retained earnings without paying a flotation cost. Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt.


If a firm finds that the cost of debt is less than the cost of equity, decreasing its debt ratio must increase its WACC. 


The capital structure that minimizes the firm’s weighted average cost of capital is also the capital structure that maximizes its EBIT.


The capital structure that minimizes a firm’s weighted average cost of capital is also the capital structure that maximizes its stock price.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jmoore1989 on Aug 7, 2023

3ginamay

  • Full Member
  • ***
  • Posts: 158
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




jmoore1989

  • Member
  • Posts: 139
Reply 2 on: Aug 7, 2023
Gracias!


bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

For a complete list of videos, visit our video library