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

Author Question: Which of the following statements is correct? (Read 622 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
Wow, this really help


bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Excellent

 

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

For a complete list of videos, visit our video library