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

Author Question: Which of the following statements is correct? (Read 625 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
Great answer, keep it coming :)


xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Excellent

 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Thyroid conditions may make getting pregnant impossible.

For a complete list of videos, visit our video library