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Which of the Following Statements Is CORRECT

Question 44

Multiple Choice

Which of the following statements is CORRECT?


A) The capital structure that maximizes expected EPS also maximizes
The price per share of common stock.
B) The capital structure that minimizes the interest rate on debt also
Maximizes the expected EPS.
C) The capital structure that minimizes the required return on equity
Also maximizes the stock price.
D) The capital structure that minimizes the WACC also maximizes the
Price per share of common stock.
E) The capital structure that gives the firm the best credit rating also maximizes the stock price.

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